Trump Clashes with Walmart Over Rising Prices Due to Tariffs

AUSTIN, Texas — President Donald Trump criticized Walmart on Saturday for blaming tariffs for upcoming price increases on its products.

In a recent earnings call, Walmart CEO Douglas McMillon revealed that the retail giant plans to raise prices due to high tariffs, particularly those affecting Chinese goods. McMillon noted, “Even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins.”

Trump responded on his Truth Social account, stating, “Between Walmart and China they should, as is said ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING.” His comments aligned with those of Commerce Secretary Howard Lutnick, who argued that the costs of tariffs ultimately fall on businesses and consumers.

The impending price increases will take effect by the end of May, with additional hikes expected in June. Walmart’s finance chief, John David Rainey, confirmed that consumers should expect “much more” expensive items as a direct effect of tariffs, which currently sit at a minimum of 10% for many imported goods.

Walmart sources products from several countries, including Canada, Mexico, and China, where tariffs of up to 25% apply for certain categories, particularly steel and vehicles. McMillon stated, “All of the tariffs create cost pressure for us, but the larger tariffs on China have the biggest impact.”

Notably, Trump recently decreased tariffs on most Chinese imports to 30% amid a temporary truce with China but warned that the rates could rise again if a trade agreement is not reached.

Concerns about the trade war are reflected in diminished consumer sentiment, as reported by the University of Michigan, with a reported 2.7% drop in consumer confidence from April to May.

Walmart is particularly preparing for back-to-school shopping and highlighted the impact of tariffs on essential goods. “Food inflation is very much on our mind,” McMillon added, noting that standard grocery items such as avocados and bananas, which are imported from countries like Colombia and Costa Rica, could see price hikes.

Experts have predicted that item categories ranging from electronics to toys, heavily imported from China, will experience more noticeable price increases in the coming months. Recent data indicated a 42.9% rise in the price of certain toys like Barbie dolls, already trending as many toy companies adjust their prices.

As for now, McMillon aims to keep food prices stable despite soaring costs in other categories, asserting, “We’ll do our best to control what we can control in order to keep food prices as low as possible.”