WASHINGTON (AP) — On Saturday, President Donald Trump criticized Walmart, using social media to declare that the retail behemoth should absorb the increased costs stemming from his tariff policies.
Amid rising import taxes, Trump has attempted to reassure a dubious public that foreign manufacturers would bear these costs, and that businesses like retailers and automakers would manage any extra expenses. However, numerous economic studies cast doubt on these assurances, cautioning that such trade measures could heighten inflation. On Thursday, Walmart cautioned that prices on items like bananas to children’s car seats might rise.
In a Truth Social post, Trump targeted the retailer, which employs 1.6 million Americans. He argued that the Bentonville, Arkansas-based company should forgo some of its profits to support his economic strategies, which he claims will eventually result in more manufacturing jobs within the U.S.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump posted. “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 posting by the Republican president reflected the increasingly awkward series of choices that many major American companies face as a result of his tariffs, from deteriorating sales to the possibility of incurring Trump’s wrath. Trump has similarly warned domestic automakers to not raise their prices, even though outside analyses say his tariffs would raise production costs.
So far, those tariffs have darkened the mood of an otherwise resilient U.S. economy. The preliminary reading of the University of Michigan survey of consumer sentiment on Friday slipped to its second lowest measure on record, with roughly 75% of respondents “spontaneously” mentioning tariffs as they largely expected inflation to accelerate.
In April, Walmart CEO Doug McMillon was among the retail executives who met with Trump at the White House to discuss tariffs. But the Trump administration went forward despite warnings and has attacked other companies such as Amazon and Apple that are struggling with the disruptions to their supply chains.
Walmart chief financial officer John David Rainey said he thinks $350 car seats made in China will soon cost an additional $100, a 29% price increase.
“We’re wired to keep prices low, but there’s a limit to what we can bear, or any retailer for that matter,” he told The Associated Press on Thursday after the company reported strong first-quarter sales.
The administration recently ratcheted down its 145% tariffs on China to 30% for a 90-day period. Trump has placed tariffs as high as 25% on Mexico and Canada due to illegal immigration and drug trafficking, harming the relationship with America’s two largest trading partners.
There is a universal baseline tariff of 10% on most countries as Trump promises to reach trade deals in the coming weeks after having shocked the financial markets in early April by charging higher import taxes based on trade deficits with other countries. Trump insists he intends to preserve the tariffs as a revenue source and that a framework agreement with the United Kingdom would largely keep the 10% tariff rate in place.
Trump has also placed import taxes on autos, steel and aluminum and plans to do so on pharmaceutical drugs, among other products.
The tariffs and Trump’s own reversals on how much he should charge have generated uncertainty across the U.S. economy, such that Federal Reserve Chair Jerome Powell has held the central bank’s benchmark rates steady until there is more clarity. Powell has warned that tariffs can both hurt growth and raise prices.
On Saturday, Trump repeated his calls for Powell to cut the benchmark rates. That could cause inflation to accelerate, but the president has maintained that inflationary pressures have largely disappeared from the economy.
“Too Late Powell, a man legendary for being Too Late, will probably blow it again – But who knows???” Trump posted on Truth Social.
