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Home Lifestyle

Trump tells Walmart to ‘eat the tariffs’ after retailer warned it should raise prices

INBV News by INBV News
May 18, 2025
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Trump tells Walmart to ‘eat the tariffs’ after retailer warned it should raise prices
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People shop at a Walmart in Rosemead, California, on April 11, 2025. 

Frederic J. Brown | Afp | Getty Images

President Donald Trump blasted Walmart on Saturday after the country’s largest retailer warned this week that it should should raise prices due to tariffs.

“Walmart should STOP trying responsible Tariffs as the rationale for raising prices throughout the chain,” Trump wrote on Truth Social. “Between Walmart and China they need to, as is alleged, “EAT THE TARIFFS,” and never charge valued customers ANYTHING. “I will be watching, and so will your customers!!!”

Walmart CFO John David Rainey said in an interview with CNBC on Thursday that, “We have now not seen price increases at this magnitude, within the speed through which they’re coming at us before, and so it makes for a difficult environment.”

As a retail giant and the biggest grocer within the country, Walmart is commonly seen as a bellwether for the health of shops and U.S. consumers.

Rainey said he’s “pleased with the progress that is been made by the [Trump] administration on tariffs from the degrees that were announced in early April, but they’re still too high.” That’s despite a 90-day reprieve that lowered duties on Chinese imports to 30%. Goods from dozens of other countries face a ten% duty. Walmart imports electronics and toys from China and produce including avocados and bananas from Central and South America.

He said that the retailer wants to maintain its prices lower than competitors, especially at a time when shoppers are looking for discounts. To do this, he said Walmart will absorb a few of the tariff-related higher costs and he expects suppliers to soak up some higher costs, too.

Rainey said the corporate will “attempt to work with suppliers to maintain prices as little as we will.”

Walmart echoed that sentiment on Saturday when asked to comment on Trump’s post.

“We have now at all times worked to maintain our prices as little as possible and we can’t stop,” Walmart said in an announcement. “We’ll keep prices as little as we will for so long as we will given the fact of small retail margins.”

Walmart joined a growing variety of firms which have increased prices or warned that higher prices are coming as a result of tariffs. Microsoft said earlier this month that it has increased the really useful retail prices of Xbox video game consoles and a few controllers.

Barbie maker Mattel announced earlier this month it’s moving production out of China, but still expected to have price increases its toys. And Ford warned last week it could should raise prices on some cars.

Walmart maintained its sales forecast for the 12 months on Thursday, but declined to offer an earnings or operating income forecast for the second fiscal quarter, citing the frequent changes within the Trump administration’s tariff policies.

Major U.S. retailers, including Goal, Home Depot and Lowe‘s, are expected to share their very own outlooks on the impact of tariffs once they report results next week.

Shares of Walmart ended 2% higher on Friday at $98.24.

WATCH: Pro: CNBC’s full interview with Walmart CFO John David Rainey

Watch CNBC's full interview with Walmart CFO John David Rainey
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