Walmart’s Chief Executive Officer, Doug McMillon, stated on Thursday that the company was unable to bear the full cost of tariffs due to the slim profit margins in retail. In response, US President Donald Trump suggested that Walmart should “absorb the tariffs” rather than using the duties imposed by his administration on imported goods as an excuse for raising prices.
On Saturday, US President Donald Trump responded by telling Walmart it should “absorb the tariffs” rather than using the duties his administration imposed on imported goods as an excuse for raising prices.
Trump’s comments followed a statement from Walmart earlier in the week, where the company announced it would have to increase prices later this month due to the ongoing tariff situation.
“Walmart should stop blaming tariffs as the reason for raising prices across the board. Last year, Walmart made billions of dollars—far more than expected,” Trump said in a post on social media.
“Both Walmart and China should, as the saying goes, ‘eat the tariffs’ and not pass those costs on to their customers.”
Walmart’s Response and Retail Challenges
In response, Walmart explained that the company had always aimed to keep its prices as low as possible and would continue to do so. “We will strive to maintain the lowest possible prices for as long as we can, given the realities of our slim profit margins,” the retailer said in a statement to Reuters.
Doug McMillon, Walmart’s CEO, acknowledged on Thursday that while the company couldn’t absorb all of the tariff costs, it remained committed to ensuring that these costs, particularly those related to goods imported from China, would not affect food prices.
Numerous US companies have either revised down or withdrawn their full-year forecasts amid ongoing tensions with trading partners, especially China, as consumer spending slows.
Walmart’s stance on the impact of tariffs is noteworthy as a key indicator of US consumer health. The retailer is known for its ability to manage costs aggressively to maintain low prices. Every week, 255 million people shop in its stores or online, and 90% of the US population lives within 16 kilometres of a Walmart.
Walmart’s announcement came about three weeks after reports surfaced that Amazon was planning to disclose the effect of tariffs on its product prices. The White House strongly criticised Amazon over the report, which the company quickly denied.
