US President Trump Responds Strongly to Walmart’s Price Increase Due to Tariffs
US President Trump recently made a strong response to the comments from American retail giant Walmart regarding price increases due to rising tariffs. He posted on the social media platform Truth Social, stating that Walmart and China should “absorb the tariffs” rather than pass the costs on to consumers. This war of words surrounding tariff policies and corporate pricing strategies has once again garnered widespread attention from the market and the public.
Walmart Warns of Price Pressure: Tariff Costs Hard to Absorb
Walmart’s CFO John David Rainey stated in an interview with CNBC this week that the current price pressures are unprecedented, saying, “We have never seen price increases at this speed and magnitude, making the retail environment more challenging.” He pointed out that although tariffs on Chinese imports have been reduced from the initially announced levels, currently only 30% is being charged during the 90-day grace period, while imports from several other countries still face a 10% tariff. This has put significant pressure on Walmart, which imports large quantities of electronic products, toys, and agricultural products such as avocados and bananas.
Trump: Don’t Blame Tariffs, Absorb the Costs
Trump immediately issued a statement on Truth Social criticizing Walmart for raising prices under the pretext of tariffs. He wrote, “Walmart should stop using tariffs as an excuse to raise prices. Walmart and China should together ‘absorb the tariffs’ and not pass on the extra costs to precious customers. I will be watching you, and so will the customers!” This statement not only reflects Trump’s insistence on the tariff policies promoted by his administration but also highlights his view on whether large enterprises should absorb the costs of such policies.
Walmart Responds: We Are Doing Our Best to Keep Prices Low
In response to Trump’s accusations, Walmart emphasized its consistent stance: “We have always been working to keep prices at the lowest level and will continue to do so as long as the retail profit structure allows.” Rainey also added that the company is currently cooperating with suppliers to try to share some of the costs in order to reduce the impact on consumers. He stated, “Our goal is to make prices more attractive than our competitors, especially during times when consumers are budget-conscious.”
Price Increases Not Just at Walmart: Tech and Auto Industries Also Affected
Walmart is not the only company considering price increases due to tariffs. Microsoft announced earlier this month that it would raise the suggested retail price of Xbox consoles and some controllers; toy giant Mattel plans to move production lines out of China but still expects toy prices to rise; and automaker Ford has also warned that certain models will face pressure to adjust prices. This series of corporate actions highlights the broad impact of tariff policies on US import-oriented industries.
Market Response Mild: Walmart’s Stock Price Slightly Rises
Despite facing a situation where price increases and political pressures intertwine, Walmart has maintained its forecast for annual sales, but chose not to predict earnings and operating profits for the second fiscal quarter, citing the frequent changes in tariff policies by the Trump administration leading to uncertain prospects. As of Friday’s close, Walmart’s stock price rose by 2%, closing at $98.24 per share, indicating that investors temporarily still have confidence in the company’s ability to respond to challenges.
More Retail Giants Will Weigh In Next Week
As Walmart initiates the discussion on price increases due to tariffs, other large retailers such as Target, Home Depot, and Lowe’s are also expected to release their financial reports next week, with the public keen to see how they assess the actual impact of tariffs on their operations. Although Trump’s remarks are strong, whether companies can truly “absorb the tariffs” in light of real economic pressures may not be solely determined by the president’s words.
Risk Warning
Investing in cryptocurrencies carries a high risk, and prices may fluctuate dramatically, potentially leading to a total loss of principal. Please assess risks carefully.