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.
Shoppers at Walmart, the world’s largest retailer known for budget-friendly, may soon begin to see high prices on shelves as the company reacts to President Donald Trump’s evolving trade policies.
The president accused Walmart of unfairly denounced the expected price hike, and the company should “eat tariffs” and not hand over import taxes to consumers in mail to true social society.
“We’ve always worked to keep prices as low as possible, but it’s not stopping,” Walmart spokesman Joe Pennington told USA Today in response to Trump’s comments. “We’ll keep the reality of retail margins as low as possible, as possible, the prices are as low as possible.”
Despite the rise in revenue and operating profits for the first quarter, Walmart executives say these small margins are likely to still raise prices.
Here’s what you need to know about which Walmart items cost more:
When will Walmart prices rise?
John David Rainey, Walmart’s Chief Financial Officer and Executive Vice President, told CNBC that prices could rise earlier in the end of May or June.
“The proposed tariff levels are pretty difficult for all retailers for suppliers, and our concern is that consumers feel a part of it,” Rainey said.
Robert Handfield, a professor of supply chain management at North Carolina State University, said previously USA Today Walmart had accepted “many” advance shipments to prevent empty shelves when they saw tariffs coming.
“Their warehouse is full of products because they planned it first,” Handfield said in April. “When they’re running out of stock and need to refill, that could be a problem.”
What’s more expensive at Walmart?
In a May 15 call to quarterly revenue with investors, Walmart President Douglas McMillon repeatedly said the company hopes it will keep prices as low as possible, but has picked out products that tariffs could be most affected.
McMillon said tariffs in countries, including Costa Rica, Peru and Colombia, could affect the prices of perishable items sold at Walmart, such as bananas, avocados, coffee and roses.
He also mentioned electronics and toys in particular. Trump spoke directly to the toy industry in April, according to data from the US Department of Commerce.
“Someone said, ‘Yeah, the shelf will open,'” Trump told reporters. “Well, maybe kids have two dolls instead of 30 dolls. And maybe two dolls cost a few more dollars.”
Rainey reminded investors earlier this year that more than two-thirds of what Walmart sells are made in the US, but MacMillon said the company sells imports from around the world.
In a call on May 15th, he said the other large markets are China, Mexico, Vietnam, India and Canada.
“There are certain items, certain categories of products that we rely on to import from other countries, and those prices are likely to rise, which is not good for consumers,” McMillon said.
Contribution: Kathryn Palmer
Reach Rachel Barber at rbarber@usatoday.com Follow her at x @rachelbarber_
