Donald Trump lashes out at Walmart for blaming his policies for price hikes: ‘Eat the tariffs’
WASHINGTON, DC: President Donald Trump lashed out at Walmart on Saturday, May 17, accusing the retail behemoth of unfairly blaming his trade policies for upcoming price hikes and warning the company he and shoppers will be “watching.”
The criticism came after Walmart CEO Doug McMillon revealed during a recent earnings call that the company expects to raise prices due to renewed trade tensions and resulting tariffs, as reported by Mediaite.
“We will do our best to keep our prices as low as possible. But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” McMillon explained, as per CNN.
Donald Trump says Walmart should stop trying to blame his tariffs as the reason for raising prices
Donald Trump, however, wasn’t having it. In a fiery post on Truth Social, the president rejected Walmart’s justification and demanded that the company shoulder the cost of tariffs instead of passing it on to consumers.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump wrote.
“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!!!” the 78-year-old added.
Trump didn’t waste any time getting back to his usual routine after touching down at the White House Friday night, fresh off a four-day tour of the Persian Gulf that included stops in Saudi Arabia, Qatar, and the UAE.
Walmart CFO warns tariff-driven price hikes may hit consumers by the end of May
Walmart executives doubled down on their position, insisting the company is committed to everyday low pricing, but that the economic pressure is simply too high.
Walmart's Chief Financial Officer John David Rainey explained in a CNBC interview that neither retailers nor suppliers can fully absorb the new costs.
“We’re wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb,” Rainey said. “It’s more than any supplier can absorb. And so I’m concerned that consumer is going to start seeing higher prices. You’ll begin to see that, likely towards the tail end of this month, and then certainly much more in June.”
Walmart shared that it’s anticipating a 3.5% to 4.5% bump in net sales for its fiscal second quarter. However, the retail giant held off on offering specific projections for earnings per share or operating income growth, citing the unpredictability of US tariff policies as a key reason for the uncertainty.
Walmart is often viewed as a reflection of the broader US consumer landscape, thanks to its widespread presence and diverse customer base spanning different ages, income levels, and regions. During his conversation with CNBC, Rainey shared that shopper habits have remained steady compared to earlier quarters.
“They’re discerning. They’re mindful. They’re maybe a little concerned about possible looming price increases, but their behaviors largely have not changed. They’re still looking for value,” he explained.
Rainey described the quarter’s sales as "a little choppy." February came in softer than Walmart had anticipated, he said, while March aligned more closely with expectations. April, however, "was a lot stronger." As for May, Rainey noted that so far it "feels a lot more like April."
