Trump Tells Walmart to ‘Eat the Tariffs’ After Retailer Warns of Raising Prices
A growing clash between President Donald Trump and Walmart is drawing national attention as the retail giant warned consumers that they will soon face higher prices due to Trump’s sweeping tariffs.
Walmart has signaled that the cost of goods will begin to rise as a direct consequence of the administration’s trade policies, particularly the mounting tariffs on Chinese imports. Retailers across the country have echoed this concern, cautioning shoppers that inflation at the checkout may soon become unavoidable.
Trump has taken a combative stance in response. Instead of accepting that tariffs often translate into higher prices for American consumers, Trump insists that companies like Walmart should absorb the impact.
In a fiery post on Truth Social over the weekend, Trump directly called out Walmart, urging the retail juggernaut to shoulder the cost rather than pass it along to customers.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. 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!!!”
The confrontation arrives during an already shaky moment for the U.S. economy. On Monday, financial markets reacted with caution after Moody’s unexpectedly downgraded the U.S. sovereign credit outlook, citing economic uncertainty. Treasury yields spiked as borrowing costs climbed, while Walmart’s stock dipped over 1% amid the escalating tension.
In a statement, Walmart defended its pricing strategy, saying it was working to keep costs as low as possible “for as long as we can given the reality of small retail margins.”
Behind the scenes, Walmart executives have been more blunt about the challenges. CFO John David Rainey told CNBC last week that price hikes are imminent.
“We’re wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb. It’s more than any supplier can absorb. And so I’m concerned that consumer is going to start seeing higher prices.”
He added that customers can expect the changes to start rolling out this month, with additional increases expected in June.
Walmart CEO Doug McMillon also warned that tariffs targeting imports from Latin American countries like Colombia, Costa Rica, and Peru will likely drive up food prices in particular.
Trump’s public rebuke of Walmart places pressure not just on the Arkansas-based chain but also on other retailers set to report earnings this week, including Home Depot, Lowe’s, Target, and TJX Companies (parent of TJ Maxx and Marshalls). Initially, Walmart’s forecast may have given competitors tacit permission to follow suit with their own price hikes, but Trump’s aggressive messaging could put them in his political crosshairs.
Despite the rhetoric, Trump’s own Treasury Secretary, Scott Bessent, acknowledged the practical reality. Speaking on NBC’s Meet the Press on Sunday, Bessent said he had spoken directly with McMillon and confirmed Walmart would absorb some of the tariff-related costs “just as they did in ’18, ’19 and ’20.”
Bessent was quick to push back on any notion that the administration was twisting arms. “I just wanted to hear it from him,” he said, “rather than second-, thirdhand from the press.”
He also attempted to downplay inflationary fears, noting that lower gas prices would help cushion the blow to consumers’ wallets. Yet, in a separate CNN appearance, Bessent admitted, “Walmart will be absorbing some of the tariffs; some may get passed on to consumers.”
Recent data from the Bureau of Labor Statistics backs up the notion that companies have, so far, largely resisted passing tariffs on to consumers. April’s figures showed manufacturers and service providers holding the line on price increases, at least temporarily.
That resistance may not last. As the nation’s largest retailer, Walmart’s pricing decisions could open the floodgates. Industry analysts believe that Walmart’s move would give other chains the cover to do the same.
“If Walmart’s coming out — with its scale and its buying power and its focus — and saying prices are going to rise, everyone else is going to have to follow suit,” said Neil Saunders, managing director at GlobalData, a retail research firm. “Walmart is firing the starting gun on a period of price increases.”
As consumers brace for potential sticker shock, the showdown between Trump and Walmart is shaping up to be a defining flashpoint in the broader debate over tariffs, trade policy, and the true cost of “America First.”
Moumita Basuroychowdhury is a Contributing Reporter at The National Digest. After earning an economics degree at Cornell University, she moved to NYC to pursue her MFA in creative writing. She enjoys reporting on science, business and culture news. You can reach her at moumita.b@thenationaldigest.com.
