As trade tensions heat up, U.S. President Donald Trump took to Truth Social to slam retail giant Walmart for hinting at price hikes in response to new tariffs. In a direct post, he urged the retailer to "eat the tariffs" rather than pass the costs onto customers.
Walmart, the largest U.S. retailer with over 4,000 stores, warned earlier this week that even reduced tariffs would squeeze margins. Chief Executive Doug McMillon admitted the company would "do our best to keep prices as low as possible" but cautioned it could not "absorb all the pressure."
In reply to Mr. Trump's demand, Walmart spokeswoman Molly Blakeman stressed the chain's long-standing commitment to affordability: "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."
According to CFO John David Rainey, about one-third of Walmart's merchandise is sourced from overseas, underscoring how global supply chains amplify any cost shifts. Other major retailers, including Target and Best Buy, have echoed similar warnings, signaling a broad retail challenge.
Meanwhile, economists at Wells Fargo highlight that core inflation has eased to 2.8 percent year-on-year and 2.1 percent annualized over the last three months—a sign of cooling price pressures. But they caution that higher tariffs could reverse this trend, pushing up costs for goods ranging from apparel to electronics.
As shoppers brace for possible price upticks, all eyes are on whether retailers will comply with the White House's call. For digital-savvy consumers and global citizens, the outcome will reveal how trade policy translates into the price tag on everyday essentials.
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Trump demands Walmart 'eat the tariffs' amid potential price hikes
cgtn.com
