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Trump Tells Walmart to 'Eat' the Cost of His Tariffs
"If you think Walmart is going to eat the costs of tariffs, then you don't understand Walmart's greed and how it exploits its customers and workers to make its billions," said one observer.
May 17, 2025
U.S. President Donald Trump verbally thrashed Walmart on Saturday following the retailer's announcement this week that it expects to raise prices on some goods as a result of tariffs imposed by the White House.
On his social media platform Truth Social, Trump wrote that Walmart should "STOP trying to blame Tariffs as the reason for raising prices throughout the chain."
"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!!!" he wrote.
On Thursday, leaders at Walmart said that they will have to raise prices in response to tariffs imposed by the Trump administration even after lowered duties on Chinese imports were announced.
The Trump administration has placed 10% universal tariff on goods entering the United States and imposed higher tariffs on goods coming from China—though on Monday the two countries said they reached a deal to temporarily lower the tariffs they had imposed on one another while they try to hash out a trade deal. Imports from China will now be subject to a 30% tariff, whereas before many goods coming to the U.S. from China previously had at least a 145% tariff.
CEO Doug McMillon said that Walmart, which is known for its low prices, will do its best to keep prices low, but that "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."
One observer expressed skepticism that Walmart would heed Trump's demand.
"If you think Walmart is going to eat the costs of tariffs, then you don't understand Walmart's greed and how it exploits its customers and workers to make its billions," saidMelanie D'Arrigo, the executive director of a group fighting for universal healthcare in New York State.
Economists expect the cost of tariffs, which are a form of tax applied on imports that can be used to support homegrown industries that employ American workers, to be largely passed on from businesses to American consumers.
In an analysis of the Trump administration's tariff regime as of late April, with the higher duties on Chinese goods in place, the Institute on Taxation and Economic Policy found that in 2026 the poorest Americans would see the biggest tariff-induced tax hikes compared to other income groups.
Some observers also used Trump's social media post to highlight that in the past he has claimed that other countries would bear the brunt of tariffs.
The social media posts echoes a recent episode when, last month, after a news report that Amazon would display tariff-based price increases next to the price of products online, White House Press Secretary Karoline Leavitt called such a move "a hostile and political act." After a call between Trump and Amazon founder Jeff Bezos, a company spokesperson said displays had been considered for only a section of the site but wouldn't be happening.
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Critics Seize on Impending Walmart Price Hikes Due to Trump Tariffs
"If a retailer as big as Walmart can't escape the pain of tariffs, what chance does a small business have?" wrote the Senate Minority Leader Chuck Schumer.
May 15, 2025
Democratic lawmakers and other voices are highlighting a Thursday announcement from Walmart that the world's largest retailer will have to raise prices on some items in response to tariffs in order to heap criticism on the Trump administration's tariffs regime.
"We will do our best to keep our prices as low as possible. But 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," said Walmart CEO Doug McMillon on a Thursday earnings call, according to CNN.
"The higher tariffs will result in higher prices," said McMillon. CNN reported that price increases will begin later this month.
"We knew this was coming," wrote Sen. Andy Kim (D-N.J.), who said that U.S. President Donald Trump's tariffs "will leave working families with the bill."
The Trump administration has imposed 10% global tariffs on all goods entering the United States and imposed higher tariffs on goods coming from China—though on Monday the two countries said they had reached a deal to lower the tariffs they had imposed on one another.
Senate Minority Leader Chuck Schumer (D-N.Y.) and Rep. Jamie Raskin (D-Md.) used the Walmart news as a way to plug their recently introduced legislation, the Truth in Tariffs Act, which would require large retailers to display how much of an item's price stems from tariffs.
"These tariffs are just a tax hike on consumers," Schumer wrote on X on Thursday. "If a retailer as big as Walmart can't escape the pain of tariffs, what chance does a small business have? Their customers are inevitably going to see prices rise. Donald Trump's tariffs are nothing more than a tax hike on consumers."
The White House may not respond kindly to Walmart's announcement. Last month, after reports that Amazon would display tariff-based price increases next to the price of products online, White House Press Secretary Karoline Leavitt called such a move "a hostile and political act."
After a call between Trump and Amazon founder Jeff Bezos, a company spokesperson said displays had been considered for only a section of the site but wouldn't be happening.
After Walmart's announcement, End Citizens United, a campaign finance reform group, wrote: "Everyday, it becomes more clear that his promise to lower costs was merely a lie he told voters on the campaign trail. He doesn't work for us. He works for himself and his deep-pocketed donors."
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Secretive Trump Talks With India Spur Fears of 'More of the Same Corporate-Dominated Trade Deals'
"He's not using trade and tariff policy to protect workers—he's wielding reckless and unstrategic tariff threats as a cudgel to push more antidemocratic deals that benefit his corporate cronies."
Apr 22, 2025
Vague comments from top Trump administration officials this week signaling progress toward a bilateral trade deal with India and reports of close corporate involvement in the talks have fueled concerns that the White House is poised to uphold the status quo of business-friendly, anti-worker trade agreements, despite the U.S. president's stated desire for sweeping change.
U.S. Trade Representative Jamieson Greer said in a statement Monday that the Trump administration and India's Ministry of Commerce and Industry have agreed on "a roadmap for the negotiations on reciprocal trade." Greer did not offer specifics on what a U.S.-India trade deal would entail.
Nor did U.S. Vice President JD Vance, who said Tuesday that talks between the Trump administration and the government of far-right Indian Prime Minister Narendra Modi have yielded "very good progress."
U.S. President Donald Trump, who has claimed similar progress in trade talks with other countries, has threatened to hit India with a 26% tariff on top of an across-the-board 10% duty that the president imposed on all imports to the U.S. earlier this month. Some U.S. companies have begun laying off workers, citing uncertainty caused by Trump's erratic tariff policies.
"Without transparency and public and congressional participation in the content of these trade negotiations, it is virtually certain that these 'deals' will be nothing more than another authoritarian power grab."
Melinda St. Louis, Global Trade Watch director at Public Citizen, warned Tuesday that "Trump continues to con American workers, claiming that he's upending our unfair trading system, while actually doubling down on secretive and rushed 'negotiations' that will only lead to more of the same corporate-dominated trade deals at the expense of working people."
Trump claimed last week that he could begin to wrap up trade negotiations with China and other nations "over the next three or four weeks," but critics like St. Louis said there's plenty of reason to worry about the final outcomes.
"He's not using trade and tariff policy to protect workers—he's wielding reckless and unstrategic tariff threats as a cudgel to push more antidemocratic deals that benefit his corporate cronies," she said. "Look no further than Big Tech's hit list of other countries' privacy, anti-monopoly, and online safety laws that he waved around when he announced so-called 'reciprocal tariffs.'"
"Without transparency and public and congressional participation in the content of these trade negotiations," St. Louis added, "it is virtually certain that these 'deals' will be nothing more than another authoritarian power grab, as other countries and corporations bend the knee to Trump, benefiting billionaires at the expense of the rest of us."
The Financial Timesreported Monday that the Trump administration plans to pressure India, one of the United States' biggest trading partners, to "give online retailers such as Amazon and Walmart full access to its $125 billion e-commerce market" as part of any bilateral trade deal.
Both Amazon and Walmart donated to Trump's inaugural fund, and FT reported that the latter company's CEO "brought up the issue of India's barriers against foreign e-commerce companies" during a meeting with the U.S. president at Mar-a-Lago earlier this year.
"Two industry executives told The Financial Times that the Trump administration was coordinating closely with U.S. e-commerce platforms as part of the negotiations," the newspaper added.
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