On Saturday, May 17, President Donald Trump launched shots at retail giant Walmart, denouncing its decision to hike prices in response to rising tariff expenses. The criticism comes amid persistent economic tensions caused by the previous administration’s trade policy.
Trump took to Truth Social to voice his frustration, asserting that Walmart is unjustly blaming tariffs for its pricing decisions. “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” he wrote. “Walmart made BILLIONS OF DOLLARS last year, far more than expected.”
He further challenged the company’s stance by stating, “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!!!”
Walmart made headlines Thursday when it said that price increases might begin as early as next month. The corporation cited increased costs from tariffs imposed during Trump’s trade war as the primary motivator.
Despite criticism, Walmart maintained that its primary goal remains keeping prices low. “We have always worked to keep our prices as low as possible, and we won’t stop,” a spokesperson told The Hill. “We’ll keep prices as low as we can for as long as we can given the reality of small retail margins.”
During an earnings call on Thursday, Walmart CEO Doug McMillon reiterated the struggle to maintain profit margins under the weight of tariffs. He acknowledged the challenge, stating the company “isn’t able to absorb all the pressure.”
Walmart’s recent earnings report shows a decline in profits for the first quarter of the year. The retail giant posted earnings of $4.45 billion, or 56 cents per share, down from $5.10 billion, or 63 cents per share, the prior year, according to The Associated Press.
Trump’s retaliation came just days after the administration made an unexpected reversal in its tariff policy. Tariffs on Chinese imports were decreased from 145% to 30% for 90 days. China, on the other hand, reciprocated by lowering its retaliation tariffs from 125% to 10%.
These policy reversals show the ongoing volatility in US trade relations under Trump’s leadership. The administration has previously imposed wide tariffs, including 25% taxes on commodities from Canada and Mexico. However, many of these have either reverted to previous agreements or ceased entirely.
Economic researchers warn that the back-and-forth nature of these trade decisions may harm consumer confidence and spending, especially if merchants continue to pass costs on to customers.
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