'Eat the Tariffs': Donald Trump tells Walmart not to charge shoppers more

President Trump criticises Walmart for blaming tariffs on price hikes, urging the retailer to absorb the costs instead. 'Walmart and China should 'eat the tariffs,' he wrote on Truth Social

US President Donald Trump on Sunday criticised Walmart, accusing the retail giant of using tariffs as a pretext to increase prices. He called on the company to absorb the additional costs rather than passing them on to American shoppers.

 

“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump wrote on Truth Social.

 

“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!!!” he added. 

 

 

Trump’s comments come amid Walmart’s plans to raise prices on select items later this month, which the company attributes to increased tariffs tied to the administration’s trade conflict with China.

Walmart cites heavy tariff costs

Walmart executives, according to a Reuters report, said that the company is preparing to hike prices due to the financial strain imposed by tariffs, despite recent tariff reductions. 

 

“We will do our best to keep our prices as low as possible,” CEO Doug McMillon stated during an earnings call. “But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins.”

 

McMillon said that the company is making efforts to shield consumers from the full impact but acknowledged that some price increases are unavoidable. “The higher tariffs will result in higher prices,” he said.

 

Recognised as the world’s largest retailer and a key indicator of US consumer behaviour, Walmart reaffirmed its annual guidance. The company forecasts adjusted earnings per share between $2.50 and $2.60, along with annual revenue growth of 3 per cent to 4 per cent through January 2026. 

Analysts back Walmart's strategy

Although price increases are expected, experts say Walmart is better equipped than many other retailers to manage the challenges brought on by the tariffs.

 

“There will probably be some decline in demand due to tariffs, but a total collapse seems unlikely,” said Brian Jacobsen, chief economist at Annex Wealth Management. He added that it was “logical” for Walmart to hold off on issuing second-quarter profit guidance while keeping its full-year outlook.

 

Joseph Feldman of Telsey Advisory Group pointed out that Walmart’s broad range of products gives it room to adjust pricing more subtly. “I believe Walmart will handle the impact of tariffs better than most retailers and should continue delivering strong profits,” he said.

 

During the first quarter, the retailer reported a 4.5 per cent increase in same-store sales, driven by a rise in both customer traffic and average purchase size. According to the company, consumers spent more on items like dairy, fresh foods, pantry goods, and personal care products.

 

However, with President Trump continuing to pursue a tariff-focused trade strategy — particularly in dealings with China — the conflict between the administration and leading retailers such as Walmart appears far from over.