President Donald Trump sharply criticized Walmart on Saturday, demanding the retail giant absorb the costs of his administration’s tariffs instead of passing them on to consumers. The rebuke followed Walmart CEO Doug McMillon‘s announcement that the company would raise prices due to increased import duties.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump posted on Truth Social. “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!!!”
Walmart, the nation’s largest retailer, had warned that the tariffs could lead to price hikes on essential items like bananas and car seats. CEO Doug McMillon stated during an earnings call that the company could not fully absorb the tariff costs due to narrow retail margins.
Despite a temporary reduction of tariffs on Chinese goods from 145% to 30% for 90 days, Walmart maintained that prices would likely rise. CFO John David Rainey acknowledged progress on the tariff adjustments but insisted the levels remained high.
Former Walmart U.S. CEO Bill Simon criticized the current leadership, stating that Walmart’s improved profit margins indicate they could handle the extra costs without raising prices.
The exchange highlights the broader impact of the administration’s trade policies on American consumers and retailers. As tariffs continue to affect supply chains and production costs, companies face increasing pressure to balance profitability with affordability.
