Trump warns Walmart against raising prices, tells company to "eat the tariffs"
/ CBS/AP
President Trump ripped into Walmart, saying on social media Saturday that the retail giant should "eat the tariffs" instead of blaming the duties on imported goods imposed by his administration for its increased prices.
Walmart on Thursday warned that everything from bananas to children's car seats could increase in price despite the softer tariffs on China.
"We can control what we can control," Walmart CEO Doug McMillon said on the company's first quarter earnings call Thursday. "Even at the reduced levels, the higher tariffs will result in higher prices," he added.
The price hikes are expected to go into effect later this month.
As Mr. Trump has jacked up import taxes, he has tried to assure a skeptical public that foreign producers would pay for those taxes and that retailers and automakers would absorb the additional expenses.
In a Truth Social post on Sunday, the president lashed out at Walmart – which employs some 1.6 million people in the United States – and said the company should sacrifice its profits for the sake of his economic agenda. Mr. Trump says his economic plan 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!!!"
A spokesperson for Walmart told CBS News on Saturday that it has always worked to keep 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," the spokesperson said.
The threat by the Republican president reflected the increasingly awkward series of choices that many major American companies face as a result of his tariffs, from deteriorating sales to the possibility of incurring Mr. Trump's wrath. Mr. Trump has similarly warned domestic automakers not to raise their prices, even though outside analyses say his tariffs would raise production costs.
In April, McMillon was among the retail executives who met with Mr. Trump at the White House to discuss tariffs and potential negative outcomes. But the Trump administration went forward despite warnings and has attacked other companies, such as Amazon and Apple, that are struggling with the disruptions to their supply chains.
Walmart chief financial officer John David Rainey said he thinks $350 car seats made in China will soon cost an additional $100, a 29% price increase.
"We're wired to keep prices low, but there's a limit to what we can bear, or any retailer for that matter," he told The Associated Press on Thursday after the company reported strong first-quarter sales.
Many U.S. companies have either slashed or pulled their full-year expectations in the wake of tariffs, as consumers curtail spending.
The administration recently ratcheted down its 145% tariffs on China to 30% for a 90-day period. Trump has placed tariffs as high as 25% on Mexico and Canada due to illegal immigration and drug trafficking, harming the relationship with America's two largest trading partners.
There is a universal baseline tariff of 10% for most countries as Trump promises to reach trade deals in the coming weeks, all while insisting he intends to preserve the tariffs as a revenue source. The framework agreement with the United Kingdom would largely keep the 10% tariff rate in place.
Trump has also placed import taxes on autos, steel and aluminum and plans to do so on pharmaceutical drugs, among other products.
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