Overview

• President Trump publicly demanded on Truth Social that Walmart 'eat the tariffs' instead of raising prices, citing the company's significant profits.
• Walmart CEO Doug McMillon stated that the retailer cannot fully absorb the costs of tariffs, even at reduced levels, due to narrow profit margins.
• The Trump administration recently lowered tariffs on Chinese imports from 145% to 30% for a 90-day period, but Walmart's CFO warned that price hikes will begin by the end of May and increase further in June.
• Walmart reiterated its commitment to keeping prices as low as possible but emphasized the challenges posed by tariff-related costs on imported goods like electronics and toys.
• Other major companies, including Microsoft, Mattel, and Ford, have also reported or implemented price increases tied to ongoing trade tariffs.