President Donald Trump expressed his disapproval of Walmart Inc. WMT following the company’s warnings about potential price hikes due to tariffs.
What Happened: On Saturday, Trump used his Truth Social platform to voice his criticism of Walmart’s tariff-related price increase warnings. The President urged both Walmart and China to “EAT THE TARIFFS,” and avoid passing the costs onto consumers.
“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!!!” Trump wrote in the post.
Last week John David Rainey, Walmart’s CFO, had commented in a CNBC interview about the unprecedented speed and magnitude of the price increases due to tariffs, creating a challenging environment for the retail giant.
While acknowledging the progress made by the Trump administration on tariffs, Rainey stated that they were still too high. Despite a 90-day reprieve that reduced duties on Chinese imports to 30%, Walmart, which imports goods from several countries including China, is feeling the financial strain.
Also Read: Young Americans Express Discontent Over Trump’s China Tariffs
“We have not seen price increases at this magnitude, in the speed in which they’re coming at us before, and so it makes for a challenging environment,” Rainey mentioned.
Walmart is committed to maintaining competitive prices and plans to absorb some of the tariff-related costs. Rainey also anticipates that suppliers will bear some of the higher costs.
In response to Trump’s post, Walmart reaffirmed its commitment to keeping prices as low as possible, despite the reality of small retail margins.
Walmart joins a growing list of companies, including Microsoft and Mattel, warning of price increases due to tariffs. Some of these companies have already implemented price hikes on certain products.
Why It Matters: The escalating trade tensions and the resultant tariffs are putting pressure on retailers like Walmart, forcing them to navigate between maintaining competitive prices and managing increased costs.
The public exchange between Trump and Walmart highlights the ongoing challenges faced by global retailers amidst fluctuating trade policies.
The situation warrants close monitoring as it could potentially impact consumer spending and the broader retail industry.
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Image: Shutterstock/ZikG
