Trump tells Walmart to “eat tariffs” instead of raising prices
President Donald Trump said Saturday that Walmart should “eat tariffs” rather than condemn the obligations imposed by his managers on imports due to increased retailers’ prices.
President Donald Trump and American retail giant Walmart exchange harsh words this week about the impact of the administration’s tariffs.
Trump denounced the company on social media last weekend, unfairly denounced Walmart’s expected price rise, ordered the world’s biggest retailer to “eat tariffs” and accused consumers of not passing import costs.
“I’m watching, and so are your customers!!!” Trump said in the Truth Social Post on May 17th.
The company responded to the president’s words in a statement to USA Today on Tuesday, May 20th.
“We’ve always worked to keep prices as low as possible, but it’s not stopping,” said Joe Pennington, a spokesman for Walmart. “We’ll keep the reality of retail margins as low as possible, as possible, the prices are as low as possible.”
Despite exceeding sales expectations in the first quarter, Walmart may need to raise shopper prices due to increased tariffs imposed by the Trump administration, according to revenue calls.
Walmart is the latest US company to avoid second-quarter profit guidance due to uncertainty about Trump’s tariffs.
Trump has long argued that other countries will pay the tariffs, but many economists say that American companies will import tariffs and usually hand them to customers to maintain profits.
“The proposed tariff levels are pretty difficult for all retailers for suppliers, and our concern is that consumers feel a part of it,” Walmart Chief Financial Officer and Vice President John David Rainey said in a May 15 interview with CNBC.
Rainey said CNBC prices are likely to rise until June with tails stretching at the end of this month, with electronics, toys and food products being specifically mentioned in the company’s first quarter revenue call on May 15th.
Walmart President Douglas McMillion said in his call that he wanted to keep prices of food and consumables as low as possible, but said tariffs in countries such as Costa Rica, Peru and Colombia “put pressure on imports such as bananas, avocados, coffee and roses.”
Trump’s tariffs disrupted global trade since early April when it announced a 10% tariff on imports and national high-increasing tariffs from all 60 countries. He then suspended these additional charges and pursued negotiations to reach a deal on so-called “mutual” charges.
Tariffs on China, the US’s major economic rival on the world stage, reached an astounding 145% at one point as rates rose in the trade war. However, both countries agreed on May 12 to significantly reduce their 90-day tariffs.
Contributions: Riley Beggin, USA Today; Reuters.
Kathryn Palmer is a national trending news reporter for USA Today. You can contact her kapalmer@usatoday.com And with x @Kathrynplmr.
