Trump tells Walmart to ‘eat the tariffs’ amid retail price hike alarm

US President Donald Trump has taken aim at Walmart, urging the retail giant to absorb the cost of tariffs instead of passing them on to consumers. In a sharp rebuke posted on his social media platform Truth Social, Trump accused the company of hiding behind his trade policies while raking in massive profits.

“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.”

His comments follow Walmart’s announcement earlier this week that it would begin raising prices due to increased import duties. The company, a key player in American retail, cited high tariffs on Chinese goods as the primary driver of the looming price hike.

Walmart retail price hike ultimatum

According to Reuters, Walmart CEO Doug McMillon stated on Thursday that the company could not absorb all the tariff costs because of narrow retail margins. However, he assured that Walmart was committed to shielding customers from rising costs as much as possible — especially on essentials like food.

“We will do our best to keep our prices as low as possible,” McMillon told Reuters. “But we won’t be able to absorb all the pressure imposed by the tariffs.”

Following Trump’s remarks, Walmart reiterated its stance in a statement to Reuters: “We have always worked to keep our prices as low as possible and we won’t stop,” said company spokesperson Molly Blakeman. “We’ll keep prices as low as we can for as long as we can given the reality of small retail margins.”

The retailer, which saw over 3 per cent sales growth to $112 billion in the most recent quarter, has not issued a profit projection for the current quarter, citing the ongoing uncertainty around tariffs.

Trump tariff saga

President Trump’s latest confrontation with Walmart is part of a broader and aggressive trade strategy that has seen the US impose tariffs on a range of foreign goods and trading partners.

The latest salvo came on April 2, 2025, when Trump unveiled a new wave of sweeping import duties during his “Liberation Day” announcement, including a staggering 145 per cent tariff on Chinese goods.

In retaliation, Beijing responded with reciprocal tariffs of 125 per cent on American goods. The tit-for-tat escalations disrupted global supply chains, drove up costs for consumers, and rattled financial markets.

Although a temporary 90-day tariff pause was agreed , a 10 per cent base tariff on Chinese goods remained in place. The Geneva trade talks held earlier this week were also viewed as a potential turning point.

According to a joint statement, both sides have agreed to reduce tariffs: the US has brought down its duties from 145 per cent to 30 per cent, while China has cut its retaliatory tariffs from 125 per cent to 10 per cent.

Tariffs have also been raised on goods from Mexico, Vietnam, and South Korea, particularly in industries seen as vital to US national interests.

Simultaneously, the US-UK trade deal has entered its final negotiation phase, with both nations agreeing to remove certain non-tariff barriers and consider lowering duties on automotive parts and pharmaceuticals. The deal is expected to be signed later this year, aiming to bolster transatlantic trade post-Brexit.

Despite these diplomatic developments, Trump has remained firm on maintaining pressure on countries he views as taking advantage of the American market. Retailers like Walmart, which source about one-third of their products from overseas, primarily China and Mexico are reportedly caught in the middle, forced to balance profit margins against political rhetoric.

With more than 4,000 stores across the US and 90 per cent of the population living within 10 miles of one, Walmart’s decision to increase prices may have broader implications for American consumers and for Trump’s own inflation-fighting narrative ahead of the 2024 elections.