WASHINGTON, D.C. — President Donald Trump and retail giant Walmart are engaged in a heated exchange over the administration’s tariffs and their impact on consumer prices. The dispute erupted after Walmart announced impending price increases, attributing them to the tariffs imposed by the Trump administration.
Trump’s Strong Response
On May 17, Trump took to his social media platform, Truth Social, to criticize Walmart’s stance. “Eat the tariffs,” he said, demanding that the world’s largest retailer absorb the increased import costs instead of passing them onto customers. “I’ll be watching, and so will your customers!!!” Trump warned.
Walmart’s Reaction and Challenges
Walmart responded on May 20 through spokesperson Joe Pennington, who said, “We have always worked to keep our prices as low as possible and we won’t stop. We’ll keep prices as low as we can for as long as we can given the reality of small retail margins.”
Despite strong first-quarter sales exceeding expectations, Walmart indicated price hikes are likely as tariffs increase costs. CFO John David Rainey warned in an earnings call on May 15 that prices for items like electronics, toys, and food could rise later this month and into June.
Impact on Imports and Consumers
Walmart President Douglas McMillion highlighted tariffs on imports from countries including Costa Rica, Peru, and Colombia, which affect products like bananas, avocados, coffee, and roses. He emphasized the company’s goal to keep food and consumable prices low but acknowledged the pressure tariffs place on imported goods.
Background on Tariffs
Since early April, Trump has imposed a 10% tariff on imports from all countries, with additional tariffs targeting 60 specific nations. Though he has paused some fees and sought negotiations, tariffs remain a contentious issue. The U.S.-China trade war saw tariffs spike to as high as 145%, though a temporary 90-day reduction was agreed upon in mid-May.
Economists argue that while tariffs are levied on importers, businesses like Walmart typically pass those costs to consumers to maintain profits — a point of contention with Trump, who insists foreign countries should bear the tariff expenses.
Source Attribution
Information sourced from:
- Walmart Statements (usatoday.com)
- President Trump’s Truth Social Posts (truthsocial.com)
- CNBC Interview with Walmart CFO (cnbc.com)
- Trade War and Tariff Background (reuters.com)
**This article was written by [Frank Mooney]. AI was used lightly for grammar and formatting, but the ideas, words, and edits are all mine.**