President Donald Trump lashed out at Walmart on Saturday after the retail giant warned that import tariffs would force it to raise prices on a range of consumer goods, including groceries and children's products. In a post on Truth Social, Trump dismissed the company's concerns and demanded that Walmart absorb the additional costs.
"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 post came two days after Walmart CFO John David Rainey warned that rising tariffs, particularly on goods imported from China, could result in steep price increases. Rainey cited examples including a $350 child car seat potentially increasing in cost by $100, or 29%, due to import duties. "There's a limit to what we can bear, or any retailer for that matter," Rainey told The Associated Press.
The Biden-era tariffs were rolled back to 30% on Chinese goods for a 90-day period, down from 145%, but remain well above pre-2024 levels. Walmart, which imports a wide array of goods-from electronics and toys to bananas and avocados-has said it is absorbing some of the added costs but warned there is only so much it can take on.
"We have always worked to keep our prices as low as possible and we won't stop," the company said in a statement Saturday. "We'll keep prices as low as we can for as long as we can given the reality of small retail margins."
Retailers are facing increasing pressure from both sides-rising import costs due to fluctuating tariff policy and political blowback for passing those costs on to consumers. In April, Walmart CEO Doug McMillon met with Trump at the White House to discuss tariff concerns, but the administration proceeded with increases despite industry objections.
Several major companies have already raised prices or announced plans to do so. Microsoft said it would increase retail prices on its Xbox consoles and accessories. Mattel said it is shifting some production out of China but still expects price hikes on toys. Ford warned it will increase car prices due to parts tariffs.
Trump has previously directed similar warnings at domestic automakers, pressuring them not to pass tariff costs onto consumers. While claiming tariffs are paid by foreign producers, economists and Federal Reserve officials have warned that such taxes typically fall on U.S. importers and, eventually, consumers.
