Trump to Walmart ‘Eat the Tariffs,’ as Retailer Expects Prices to Increase/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump slammed Walmart for blaming tariffs on rising prices, insisting the retail giant should “eat the tariffs.” Walmart warns prices will climb on essentials like food, electronics, and toys due to high import duties, especially from China. Economists say consumers, not companies, will ultimately bear the cost.
Trump vs. Walmart on Tariffs: Quick Looks
- Walmart plans to raise prices due to Trump’s China tariffs.
- Trump tells Walmart to “eat the tariffs” and not burden customers.
- Economists warn tariffs will hurt low- and middle-income families.
- Price hikes expected on food, electronics, toys, and baby gear.
- Some tariffs dropped to 30% during temporary trade truce with China.
- Walmart CFO warns steeper price increases coming in June.
- Commerce Secretary insists businesses absorb tariffs, not shoppers.
- Tariffs affect goods from China, Mexico, Canada, India, and more.
- Seasonal items, home goods, and gadgets will see inflation.
- Retailers rushed imports to stock up before tariff hikes took effect.
Trump to Walmart ‘Eat the Tariffs,’ as Retailer Expects Prices to Increase
Deep Look
Trump Tells Walmart to Absorb Tariffs as Retail Giant Warns of Price Hikes
WASHINGTON, D.C. — President Donald Trump has publicly rebuked Walmart, calling on the retail giant to “eat the tariffs” and shield American consumers from rising prices. The remarks came after Walmart warned that its prices are set to rise significantly due to heightened import tariffs, particularly on Chinese goods.
Walmart CEO Doug McMillon said Thursday the company could no longer absorb tariff-related costs. “Given the magnitude of the tariffs, even at reduced levels, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” he said on an earnings call.
Trump, in his Truth Social post, lashed out at the retailer, which employs 1.6 million people in the United States. He said the company, based in Bentonville, Arkansas, should sacrifice its profits for the sake of his economic agenda that he says will eventually lead to more domestic jobs in manufacturing.
“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!!!”
Who Pays the Price?
Commerce Secretary Howard Lutnick echoed Trump’s position, claiming that tariffs are absorbed by businesses or exporting countries.
Former Treasury Secretary Larry Summers disagrees, calling the belief “ludicrous.” Most economists argue tariffs translate directly into higher prices for U.S. consumers — especially Walmart’s core customer base: working-class families.
With over 4,600 stores across the U.S., Walmart’s massive product lineup is deeply intertwined with global trade. Tariffs as high as 25% now apply to key imports like electronics, furniture, and vehicle components, while broader Chinese imports once taxed at 145% were recently reduced to 30% as part of a 90-day trade truce.
Still, Trump warned that tariffs could “become substantially higher” if a deal with China isn’t reached, keeping pressure on Walmart and other import-reliant businesses.
Rising Prices Ahead
According to Walmart CFO John David Rainey, customers can expect prices to rise sharply by June. The company has already observed price increases beginning in April.
Here’s where prices are expected to hit hardest:
Groceries and Produce
McMillon cited inflationary pressure on imported food. Fruits like bananas, avocados, melons, and citrus — sourced from Colombia, Peru, and Costa Rica — are among those affected. While exact increases weren’t disclosed, Walmart emphasized efforts to manage fresh food waste to offset some price jumps.
Seasonal and Back-to-School Items
Back-to-school shopping is already being impacted, with higher tariffs applying the moment items cross U.S. customs. McMillon warned that decisions on Halloween and Christmas goods will be even more complicated as uncertainty lingers.
Toys, Electronics, and Baby Products
Roughly 80% of U.S. toy inventory originates from China. Toymakers like Hasbro and Mattel have already announced product cuts and price hikes. One Barbie doll’s price surged 42.9% at Target in April alone.
Gaming consoles and smartphones will also be hit. Nintendo’s upcoming Switch 2 may jump from $450 to $600. Apple’s iPhone 17 might exceed $1,000, up from the usual $799, according to experts.
Childcare essentials — including formula, strollers, and car seats — could also rise in cost, with 90% of the baby product supply chain tied to China.
Home Goods and Appliances
While not considered “essential,” home goods will also be affected. Imports from China included over $438 billion in goods last year, with nearly 20% in machinery and appliances. Consumers are already delaying these purchases, adding pressure to Walmart’s bottom line.
“We’re seeing softness in categories like home products and electronics,” said Rainey.
Consumer Sentiment Dips
The fallout from Trump’s trade policies is already shaking consumer confidence. The University of Michigan reported a 2.7% drop in consumer sentiment between April and May, citing rising fears of recession and concerns over inflation tied to tariffs.
Despite public frustration, Walmart is taking steps to buffer the impact. The company accelerated imports earlier this year to build inventory before tariffs took full effect. But that strategy only offers temporary relief.
Trump’s Rift with Frd’s Powell
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.
The Bigger Picture
Trump’s push for aggressive tariffs is central to his 2025 economic strategy, part of a broader “America First” trade agenda. But critics say the cost is being quietly transferred to consumers — especially families who rely on Walmart for basic goods.
As trade negotiations with China and other nations continue, the standoff between Trump and Walmart could become a flashpoint in the national debate over economic policy, inflation, and who truly bears the burden of tariffs.
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