Donald Calls on Walmart to Eat the Tariffs, He Still Does't Understand Tariffs
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Suppose Walmart ate the Tariffs, which they will never do. It will make them close many stores around the world. But just suppose. Then The Tariff would not work. The idea of the Tariff is to stop people from buying because the prices are too high. If The store would pay that money then there is nothing to stop people from buying the way they always do, Imports particularly China because they are cheaper. This grown man does not know how it works and how simple that is. Tariffs are supposed to change minds and habits of shopping. If there is no incentive things stay the same not matter what the store does.
Time
President Donald Trump has called out Walmart after the retailer warned consumers that they may soon have to start raising prices as the U.S. tariffs are “still too high.”
Taking to Truth Social on Saturday, May 17, Trump said: "Walmart should stop trying to blame tariffs as the reason for raising prices throughout the chain. 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!"
Trump's post appeared to be in response to comments made by Walmart's chief financial officer John David Rainey during an interview with CNBC on Thursday.
“We’re wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb,” Rainey said. “It’s more than any supplier can absorb. And so I’m concerned that [consumers are] going to start seeing higher prices. You’ll begin to see that, likely towards the tail end of this month, and then certainly much more in June.”
Trump’s tariffs rocked the stock market upon their announcement in April. In a sign of easing tensions in the trade war, on Monday, Trump announced a broad trade agreement with China, lowering U.S. import taxes on goods coming from China from 145% down to 30% for an initial 90-day period.
Despite this shift, Walmart is still feeling the pinch. However, the retailer’s net sales are set to increase 3.5% to 4.5% for the second quarter of the fiscal year.
BY AMERICAN HEART ASSOCIATION
Per CNBC, Walmart "declined to provide guidance for earnings per share or operating income growth because of fluctuating U.S. tariff policy."
While the stock market reacted positively to Trump’s deal with China over the tariffs, the continuous reversals from the White House have confused consumers and businesses, leaving them little stability.
“[T]his is a little bit unprecedented in terms of the speed and magnitude in which the price increases are coming,” Rainey said.
Meanwhile, the potential price hikes from Walmart come as U.S. consumers contend with concerns over how Trump’s tariffs could hurt their wallets across multiple sectors—from groceries, to electronics, to automobiles.
Grocery prices have specifically been a concern for U.S. shoppers, after egg prices continued to rise in March, brought about in part by a severe bird flu outbreak. Though April saw a dip in the price of eggs, the effects of the formerly record-high prices are likely still being felt, marked by a significant drop in U.S. consumer sentiment.
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