President Donald Trump took aim at Walmart over the weekend, accusing the retail giant of unjustifiably raising prices in response to U.S. tariff policies.
The clash follows Walmart’s announcement that it will increase prices as early as next month, citing financial pressures from tariff-related costs and a notable drop in quarterly profits, as The Hill reports.
On Thursday, Walmart revealed plans to begin raising prices sometime next month, attributing the move to mounting expenses caused by a series of tariffs implemented on Trump's order. The announcement was part of the company's quarterly earnings release, which noted a decline in profit compared to the same period last year.
According to Walmart, its first-quarter earnings fell to $4.45 billion, or 56 cents per share -- a decline from the $5.10 billion, or 63 cents per share, reported a year earlier. The company also withheld a future profit forecast, citing the unpredictability of today’s economic environment. Commenting during an earnings call, Walmart CEO Doug McMillion explained that the retail chain was “not able to absorb all the pressure” stemming from the tariffs, referencing the tight operating margins that are common in the retail sector.
By Saturday, Trump had issued his personal response via his Truth Social platform, lashing out at Walmart’s explanation for the upcoming price increases. He accused the corporation of pointing fingers at tariff policies instead of managing cost internally.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump posted. He went on to highlight Walmart’s profitability, stating, “Walmart made BILLIONS OF DOLLARS last year, far more than expected.”
The president suggested that Walmart should deal with the extra costs itself rather than shifting them to shoppers, writing that Walmart and China alike should "EAT THE TARIFFS." He added, “I’ll be watching, and so will your customers!!!”
In response to Trump’s criticisms, a Walmart spokesperson issued a statement to The Hill on Saturday, emphasizing the company’s long-standing efforts to minimize costs at checkout. “We have always worked to keep our prices as low as possible and we won’t stop,” the spokesperson said.
The company further explained that although they aim to shield consumers from price escalations, they can only continue doing so within the constraints of thin retail profit margins. “We’ll keep prices as low as we can for as long as we can given the reality of small retail margins,” the spokesperson added. Retail experts have warned for months that the tariff landscape could translate into added costs for American consumers, particularly in the household goods and apparel markets where Walmart commands substantial market share.
Adding another layer to the economic discussion, the Trump administration earlier in the week enacted a significant change in its approach to tariffs on Chinese goods. The White House reduced those tariffs from a peak of 145% to 30% for a temporary 90-day window.
In response, the Chinese government also eased its retaliatory measures, bringing its tariff rate down from 125% to 10%. This mutual decrease in trade penalties marked a notable reversal in the international tariff policy pursued in past years.
These adjustments followed a pattern of shifting trade strategies during Trump’s presidency, with occasional exemptions applied to Chinese imports and a rollback of a 25% tariff on goods from Canada and Mexico. A 90-day pause on “reciprocal” tariffs affecting various other countries was also introduced as part of the broader reassessment.
Despite the short-term relief from lowered tariffs, Walmart's leadership remains cautious about future financial outlooks. The absence of a profit forecast for the current quarter reflects the instability businesses face amid evolving fiscal policies and global trade dynamics.
Walmart is one of the largest private employers and retailers in the United States, and its pricing decisions can have a ripple effect across the broader retail landscape. Whether the company’s upcoming price adjustments will impact its customer base remains to be seen.
As consumers prepare for potential changes at store shelves, the public dispute between Trump and Walmart underscores the broader debate over who ultimately bears the burden of international trade decisions: corporations or shoppers.
