Walmart CEO Doug McMillon recently said that the massive global retailer will likely have to raise prices due to tariffs instituted by U.S. President Donald Trump.
In response, Trump said that Walmart should just “eat the tariffs.”
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump said on his social media platform Truth Social. “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!!!”
Even though the U.S. and China agreed to reduce tariff rates by 115 percent in mid-May, Walmart will still need to pass along higher costs, its executives said.
“Given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” McMillon said on a conference call with investors, according to The Street.
“We’re wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb. It’s more than any supplier can absorb. So, I’m concerned that consumers are going to start seeing higher prices,” Walmart CFO John David Rainey said, per CNBC, adding that price hikes will start at the end of May and “much more” in June.
Walmart is not the only U.S. retailer that has expressed concern about tariffs’ impact on prices.
Rochester, New York, U.S.A.-based Wegmans and Williamsville, New York-based Tops placed signs warning of price increases due to tariffs in their produce departments, according to Supermarket News...
