Trump tariffs: US President Donald Trump sharply criticised Walmart on Saturday for attributing its upcoming price increases to tariffs imposed during his administration. In a fiery social media post, Trump said the retail giant should absorb the cost instead of passing it on to customers.
“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,” Trump posted. “Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING.”
What Walmart said in defence?
The world’s largest retailer responded by reaffirming its long-standing practice of keeping prices low despite external pressures. “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 added on Thursday that while the company could not absorb all tariff costs, especially on general merchandise from China, it remains committed to shielding food prices from the impact.
Retailers struggle amid trade war pressures
Walmart’s decision to raise prices marks a significant moment for the U.S. retail sector, which is grappling with the fallout from protracted trade tensions between Washington and Beijing. With razor-thin margins and increasing operational costs, many retailers are being forced to make tough pricing decisions.
Walmart, which serves 255 million customers globally each week and has a store within 10 miles of 90 per cent of the US population, is often seen as a barometer for consumer sentiment. Its willingness to speak openly about tariff impacts highlights the broader pressure facing American businesses.
The current situation echoes a 2019 incident when Amazon reportedly planned to disclose the impact of tariffs on its pricing, prompting criticism from the White House. Amazon denied the report, but it underscored the tension between Trump’s trade policy and major US corporations.
With election rhetoric heating up, Trump’s comments suggest tariffs may once again become a central issue in the economic debate.
(With Reuters inputs)