by Walmart Warns of Price Hikes Amid Tariffs, Trump Tells Them to ‘Eat the Tariffs’
Walmart is cautioning shoppers that prices on everyday essentials — from bananas to children’s car seats — could be going up soon, even though tariffs on Chinese goods have been slightly reduced.
“We can control what we can control,” said Walmart CEO Doug McMillon during the company’s first-quarter earnings call on Thursday. “Even at reduced levels, the higher tariffs will still lead to higher prices,” he explained.
The price increases are expected to hit later this month.
Former President Donald Trump, who has significantly raised import taxes as part of his trade strategy, has repeatedly claimed that foreign companies would shoulder the costs — not American consumers. He’s also insisted that large retailers and automakers should absorb any added expenses themselves.
In a recent post on his platform Truth Social, Trump directly criticized Walmart — one of the largest employers in the U.S. with 1.6 million workers — and urged the company to absorb the tariffs instead of passing the costs on to customers.
“Walmart should STOP blaming tariffs for raising prices,” Trump wrote. “Walmart made BILLIONS last year — more than expected. Between Walmart and China, they should ‘EAT THE TARIFFS’ and not charge their valued customers ANYTHING. I’ll be watching — and so will your customers!”
A Walmart spokesperson responded, telling CBS News on Saturday that the company is committed to keeping prices low. “We’ve always worked to offer the lowest prices possible, and we’re not stopping now,” the spokesperson said. “But with thin retail margins, there’s only so much we can absorb.”
Trump’s public warning reflects the tough choices many U.S. companies now face. Tariffs are driving up costs, while raising prices risks customer backlash — and companies fear being targeted by Trump if they don’t fall in line. He’s issued similar warnings to automakers, despite outside experts noting that his tariffs have significantly increased production costs.
Back in April, McMillon was among several retail executives who met with Trump at the White House to discuss the economic risks tied to the tariffs. Despite those concerns, the administration moved forward and has also clashed with major companies like Amazon and Apple, which are dealing with supply chain challenges.
Walmart CFO John David Rainey told the Associated Press that some items could see sharp increases — like $350 Chinese-made car seats that may soon cost $100 more, a 29% hike.
“We’re built to offer low prices, but there’s a limit to what any retailer can handle,” Rainey said, following Walmart’s strong first-quarter earnings report.
Many companies across the U.S. have cut or scaled back their annual forecasts due to the financial impact of tariffs, as consumers start spending less.
The Biden administration (building on the Trump-era policies) recently reduced a 145% tariff on Chinese imports to 30% for a temporary 90-day window. Meanwhile, Trump has also slapped tariffs of up to 25% on goods from Mexico and Canada, citing concerns over illegal immigration and drug trafficking — straining relationships with two of America’s key trade partners.
Currently, most countries face a 10% baseline tariff as Trump aims to finalize new trade deals. A proposed agreement with the UK is expected to maintain this rate.
In addition, the former president has applied import taxes on autos, steel, aluminum, and plans to expand them to include pharmaceutical drugs and other goods.
