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2d ago

Trump Urges Walmart To Absorb Tariff Costs As Retailer Plans Price Hikes

Walmart prepares to raise prices later this month due to U.S. tariffs, while President Trump publicly pressures the retailer to avoid passing costs to consumers.

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Customers enter a Walmart store on April 09, 2025 in San Leandro, California.

Overview

  • President Trump criticized Walmart on Truth Social, urging the retailer to 'eat the tariffs' instead of raising prices for customers.
  • Walmart CFO John David Rainey confirmed that tariff-related price hikes will begin in late May and increase further in June, affecting products like car seats, toys, and bananas.
  • Treasury Secretary Scott Bessent stated that Walmart will absorb some of the tariff costs, but acknowledged that consumers will still face higher prices on certain goods.
  • Walmart shares fell approximately 2% on Monday following the president's remarks, reflecting market unease over tariff-related uncertainty.
  • The standoff between the White House and Walmart highlights broader challenges for U.S. retailers navigating high tariffs and narrow profit margins, with other major chains also expected to face similar pressures.