President Donald Trump on Saturday took aim at Walmart, declaring on social media that the retail giant should absorb the costs of his tariffs rather than pass them on to consumers.
As Trump increases import taxes, he continues to insist that foreign producers – not American shoppers – will bear the brunt of the tariffs, and that major retailers and automakers should shoulder any added costs. However, economists widely dispute that claim, warning the tariffs could fuel inflation. Walmart itself cautioned Thursday that prices on everyday items – from bananas to children’s car seats – may soon rise.
Posting on Truth Social, Trump slammed the Arkansas-based company, which employs 1.6 million people in the U.S., arguing it should prioritize his economic vision – designed to boost domestic manufacturing – even if it means cutting into its profits.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump posted. “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!!!”
The threat from the Republican president reflected the increasingly awkward choices many major American companies face as a result of his tariffs – from deteriorating sales to the possibility of incurring Trump’s wrath. He has similarly warned domestic automakers not to raise prices, even though outside analyses suggest his tariffs would increase production costs.
So far, those tariffs have darkened the mood of an otherwise resilient U.S. economy. A preliminary reading from the University of Michigan’s consumer sentiment survey on Friday slipped to its second-lowest level on record, with roughly 75% of respondents “spontaneously” mentioning tariffs as they largely expected inflation to accelerate.
In April, Walmart CEO Doug McMillon was among several retail executives who met with Trump at the White House to discuss tariffs. But the administration proceeded despite warnings and has targeted other companies, such as Amazon and Apple, that are struggling with supply chain disruptions.
Walmart Chief Financial Officer John David Rainey said he believes $350 car seats made in China will soon cost an additional $100 – a 29% price increase.
“We’re wired to keep prices low, but there’s a limit to what we can bear – or any retailer, for that matter,” he told The Associated Press on Thursday, after the company reported strong first-quarter sales.
The administration recently reduced its 145% tariffs on China to 30% for a 90-day period. Trump has also placed tariffs as high as 25% on Mexico and Canada due to concerns about illegal immigration and drug trafficking – straining ties with the U.S.’s two largest trading partners.
A baseline tariff of 10% remains on most countries, as Trump promises to secure trade deals in the coming weeks, while maintaining tariffs as a revenue source. A framework agreement with the United Kingdom would largely keep the 10% tariff rate in place.
Trump has also imposed import taxes on autos, steel and aluminum, and plans to do the same for pharmaceutical drugs, among other products.
