Story: U.S. President Donald Trump said Saturday that Walmart should “eat up the tariffs his administration imposed on imported goods” rather than hiking prices for its consumers.
His comments are in response to the world's largest retailer this week, which will start raising prices later this month due to high tariffs.
“Walmart should stop trying to blame tariffs, which is why the entire chain raises prices. Walmart made billions last year, far exceeding expectations,” Trump said in a social media post on Saturday.
He added that retailers should “not charge valuable customers.”
Walmart said in a statement to Reuters that it will “keep prices as low as possible as long as we can bring in the reality of a small retail margin.”
Walmart CEO Doug McMillon said Thursday that retailers could not absorb all taxes due to narrow retail margins. Even so, he said, the company is committed to ensuring that tariff-related costs for goods mainly from China do not raise food prices.
As consumers withdraw spending, frictions between the U.S. and its trading partners, especially China, many U.S. companies have cut their full-year expectations.
As a leader in consumer health in the United States, Walmart’s clear statement on the impact of tariffs is a signpost to how the trade war affects the retail industry. Walmart is known for its ability to manage costs more actively than other companies.
