Donald Trump stated on Saturday that Walmart should quit “trying to blame tariffs” after the retail giant declared that its items would become more expensive due to tariffs.
Douglas McMillon, the CEO of Walmart, claimed in a recent interview that Trump’s tariffs were “too high,” especially for Chinese items, which is why prices of the products were shooting up.
“We will do our best to keep our prices as low as possible. But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” McMillon stated during an earnings call on Thursday.
In response, Trump wrote on Truth Social on Saturday that “Between Walmart and China, they should, as is said, EAT THE TARIFFS,” and not charge valued customers anything. I’ll be watching, and so will your customers!”
Trump’s statement echoed those of Commerce Secretary Howard Lutnick, who made the same claim that “businesses and the countries primarily eat the tariff”. Lutnick made these remarks during his appearance on Sunday’s CNN “State of the Union”.
Walmart says prices will rise ‘much more’ in June
As part of a 90-day truce with China, Trump lowered taxes on the majority of Chinese imports from a staggering 145% to 30% on Monday. However, Trump warned that if a trade deal with China is not achieved, the tariffs might rise “substantially.”
While reciprocal tariffs remain on hold for 90 days, other nations are in discussions with the US. Speaking to CNN on Sunday, Lutnick said that baseline tariffs would not drop below 10%.
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According to economists who spoke to CNN, Americans with lower and moderate incomes, who have traditionally been Walmart’s main clientele, will be negatively impacted by the tariffs.
Walmart’s finance chief, John David Rainey, told CNBC that the changes are expected to go into effect by the end of May and that prices will rise “much more” in June.
Walmart, which operates more than 4,600 stores in the US, imports goods from a number of countries, including China, India, Mexico, Vietnam, and Canada.
These nations are subject to at least 10% tariffs, and imports of steel, aluminum, automobiles, and auto parts are subject to 25% duties.
