Donald Trump Calls Out Walmart Over Price Hikes, Asks The Retail Giant To 'Eat The Tariffs'

Several American businesses have revised or withdrawn their financial forecasts, pointing to trade uncertainties and more cautious consumer behaviour as contributing factors.

Trump's remarks came shortly after the retail giant announced it would begin raising prices later in May due to the financial pressure of US import duties.

Source : Walmart

In a pointed social media post on Saturday, US President Donald Trump criticised Walmart for citing tariffs as the reason behind upcoming price increases. His remarks came shortly after the retail giant announced it would begin raising prices later in May due to the financial pressure of US import duties.

“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected,” Trump wrote, reported Reuters.

He went on to urge the company to shoulder the added costs rather than pass them on to consumers, and said, “Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING.”

Retail Pressures Mount Amid US-China Trade Tensions

Walmart responded by reiterating its commitment to keeping prices as low as possible despite economic pressures. “We’ll keep prices as low as we can for as long as we can given the reality of small retail margins,” the company said.

CEO Doug McMillon also addressed the issue during an earnings call on Thursday. While acknowledging that the company couldn’t fully absorb the cost of tariffs due to tight margins in the retail business, he emphasised that Walmart would work to ensure that food prices remain stable. Most of the products affected, he noted, fall under general merchandise categories that are largely sourced from China.

The standoff between the White House and major retailers underscores the broader strain the ongoing US-China trade dispute is placing on the consumer economy. Several American businesses have revised or withdrawn their financial forecasts, pointing to trade uncertainties and more cautious consumer behaviour as contributing factors.

Retail Sector Signals Strain from Tariff Impact

As one of the most significant players in global retail, Walmart’s warning serves as a barometer for the wider industry. Known for its efficiency and pricing discipline, the company’s statement signals that even giants with strong cost control capabilities are beginning to feel the squeeze.

Each week, approximately 255 million customers either visit Walmart stores or make purchases online globally. In the US alone, 90% of the population lives within 10 miles (16 kilometres) of a Walmart location—underscoring the company’s widespread influence on consumer pricing.

The announcement from Walmart followed recent reports that Amazon was preparing to detail how Trump’s tariffs were increasing its product costs. The White House pushed back strongly against the report, which Amazon later refuted.

As tariff disputes continue to ripple through the economy, the clash between the federal government and major retailers like Walmart reflects the growing difficulty companies face in balancing cost management with political and economic realities.