Walmart Responds to Trump’s Demand to 'Eat the Tariffs'

Walmart Clashes With Trump Over Tariff Impact

President Donald Trump and Walmart are clashing over the financial fallout of new tariffs, with the retail giant warning customers to expect higher prices and Trump demanding that the company absorbs the costs. The White House / Wikimedia

Trump Tells Walmart to ‘Eat the Tariffs’

In a May 17 post on Truth Social, Trump wrote: “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected. 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!!!” Gage Skidmore / Wikimedia

Walmart Defends Its Pricing Strategy

Walmart responded in a May 20 statement to USA TODAY, saying, “We have always worked to keep our prices as low as possible and we won’t stop. We’ll keep prices as low as we can for as long as we can given the reality of small retail margins,” according to spokesperson Joe Pennington. Kathryne Rubright/Pocono Record / USA TODAY NETWORK via Imagn Images

Retail Uncertainty Clouds Walmart’s Outlook

The company reported better-than-expected earnings for the first quarter but warned that rising tariffs imposed by the Trump administration may lead to price increases. Walmart, like many other major retailers, opted not to provide second-quarter profit guidance due to the uncertainty surrounding the new trade policies. Kaboompics.com / Pexels

Walmart CFO Warns of Imminent Price Hikes

Walmart’s Chief Financial Officer John David Rainey told CNBC on May 15 that “the level of tariffs that have been proposed is pretty challenging for all retailers,” adding, “Our concern is that consumers are going to feel some of that.” He said customers should expect to see prices rise in late May and into June, particularly for products like electronics, toys, and food. Robert Scheer/IndyStar / USA TODAY NETWORK

Tariffs Hit Everyday Essentials Like Food and Flowers

Walmart President Doug McMillon added that tariffs targeting imports from Costa Rica, Peru, and Colombia were driving up costs for staple goods such as bananas, avocados, coffee, and roses. STEVE HEASLIP/USA TODAY NETWORK / USA TODAY NETWORK via Imagn Images

Trump’s Broad Tariff Policy Stirs Global Trade Tensions

Trump’s sweeping tariffs, announced in early April, include a blanket 10% rate on imports from all countries and even higher rates on goods from 60 specific nations. Though some tariffs were paused following negotiations, including a May 12 agreement between the U.S. and China to temporarily cut rates for 90 days, the financial strain on importers remains high. kliempictures / Pixabay