WASHINGTON — President Donald Trump lashed out at Walmart on Saturday, accusing the retail giant of using his administration’s China tariffs as an excuse for raising prices and urging the company to “eat the tariffs” rather than pass the cost on to consumers.
Trump’s comments followed Walmart’s announcement earlier this week that it would begin raising prices later this month due to the financial strain imposed by high tariffs on Chinese imports.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump wrote in a social media post. “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.”
The world’s largest retailer pushed back, maintaining that it remains committed to keeping costs low. “We’ll keep prices as low as we can for as long as we can given the reality of small retail margins,” Walmart said in a statement to Reuters.
Walmart CEO Doug McMillon said Thursday that the company could not fully absorb the increased costs brought on by tariffs due to its slim retail profit margins. However, he emphasized that tariff-related price increases would primarily affect general merchandise sourced from China and not food items.
“Tariff costs will not drive food prices higher,” McMillon stated, stressing Walmart’s continued commitment to value pricing for its customers.
Walmart’s public acknowledgment of tariff-related cost pressures provides a telling snapshot of how the U.S.-China trade conflict is influencing the retail sector. As one of the largest U.S. employers and a barometer of consumer spending trends, Walmart’s decision to raise prices is likely to ripple through the broader economy.
Trump, who has long argued that tariffs are an effective tool to combat unfair trade practices and reduce reliance on Chinese manufacturing, reiterated that major corporations should be absorbing these costs rather than pushing them onto American consumers.
The president has taken a hard stance on U.S.-China trade relations, imposing several rounds of tariffs since returning to the White House. Many U.S. companies have responded by either cutting earnings forecasts or warning of higher prices, citing inflation and supply chain disruptions caused by the tariffs.
Walmart’s position reflects the challenges faced by U.S. retailers navigating rising import costs while attempting to maintain low prices for shoppers. The company serves approximately 255 million customers each week and operates within 10 miles of 90% of the U.S. population, giving it massive influence over consumer price expectations.
The pricing dispute comes just weeks after reports suggested Amazon was also assessing the impact of tariffs on product costs. The White House quickly criticized Amazon over the report, which the company denied.
As economic tensions with China continue, retailers like Walmart are being squeezed between political pressure from Washington and market pressure from consumers, highlighting the broader struggle to balance national trade policy with bottom-line economics.
