Former U.S. President Donald Trump has publicly challenged Walmart to absorb rising tariff costs rather than pass them to consumers, escalating tensions between the retail giant and political leaders over economic policy. In a Truth Social post, Trump accused Walmart of using tariffs as an excuse for price hikes, stating: "Walmart made BILLIONS OF DOLLARS last year, far more than expected."
Walmart CEO Doug McMillon warned earlier this week that new tariffs would inevitably lead to price increases, citing slim retail margins. "We will do our best to keep prices low," McMillon said, "but we can't absorb all the pressure." Approximately one-third of Walmart's products are imported, according to CFO John David Rainey.
The dispute highlights broader concerns about U.S. inflation trends. Wells Fargo economists noted that while core inflation has moderated recently, tariffs could reverse this progress, particularly affecting vehicle and apparel prices. Other major retailers like Target and Best Buy have issued similar warnings.
Walmart spokesperson Molly Blakeman reaffirmed the company's commitment to affordability but emphasized operational realities: "We'll keep prices as low as we can for as long as we can." Analysts suggest this clash may foreshadow challenges for businesses navigating shifting trade policies ahead of the 2024 election cycle.
