In a fiery response to recent price hike warnings, former U.S. President Donald Trump has called out Walmart, urging the retail giant to absorb import tariffs instead of passing the costs on to American consumers.
The controversy erupted after Walmart, the world’s largest retailer, announced it would begin raising prices later this month, citing high tariffs on imported goods—particularly from China. The news drew swift criticism from Trump, who accused the company of exploiting tariffs as an excuse to boost prices despite posting massive profits.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump wrote in a social media post on Saturday. “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.”
Trump’s comments reflect his long-standing belief that American companies—especially those with large profit margins—should shoulder the cost of tariffs rather than passing them on to consumers. During his administration, Trump imposed several tariffs aimed at reducing the U.S. trade deficit and pressuring China into more favorable trade terms.
Walmart responded by reaffirming its commitment to affordable pricing but emphasized the financial challenges it faces. In a statement to Reuters, the company said, “We’ll keep prices as low as we can for as long as we can given the reality of small retail margins.”
Walmart CEO Doug McMillon echoed this stance earlier in the week, noting that the retailer simply couldn’t absorb all tariff-related costs due to thin profit margins typical in retail. However, he assured that tariff impacts would mostly affect general merchandise and not drive up food prices.
The broader context reveals a growing strain in the U.S. retail sector. Many companies have slashed their financial forecasts amid rising tensions between the U.S. and trade partners, especially China. With consumer spending slowing, the added pressure of tariffs has become a major challenge.
Walmart’s warning also holds significant weight. As a key indicator of U.S. consumer behavior, any change in its pricing strategy can ripple through the economy. The company serves over 255 million shoppers weekly, with 90% of Americans living within 10 miles of a Walmart location.
This isn’t the first time Trump has publicly challenged a major retailer over tariffs. Just weeks ago, a report surfaced that Amazon planned to disclose how tariffs were increasing product costs. The White House quickly labeled the move as “hostile,” and Amazon denied the claims.
As the debate intensifies, one thing is clear: tariffs remain a hot-button issue with real consequences for American households. Whether companies like Walmart can—or will—“eat the tariffs” as Trump demands, remains to be seen.
