Former President Donald Trump recently warned Walmart not to increase its prices, posting on Truth Social that he’s “watching” and expects them to avoid blaming tariffs for any price hikes. He pointed out that Walmart made huge profits last year and said that the company, along with China, should absorb the cost of the tariffs instead of passing it on to customers.
Trump’s message came after Walmart’s CEO Doug McMillon said the company would need to raise prices on some items soon because of the high tariffs placed on imported goods by Trump’s administration. These tariffs are taxes on things brought into the U.S. from other countries, and they affect common items like electronics, toys, and food.
McMillon explained that even though the tariffs have been reduced a bit recently, they are still high enough to impact prices. He said that Walmart will try to keep prices low, but there’s only so much they can do because of how little profit they make on each item. Walmart’s CFO John Rainey added that they’ve never experienced such large and fast price increases, and it’s tough to manage costs when tariffs jump by 30%.
Right now, U.S. tariffs on imported goods are at 10%, but they were much higher before a recent agreement with China to ease them for 90 days. Still, some goods from China are being taxed at 30%, which is a big burden for retailers.
Many experts warn that these tariffs will end up making everyday products more expensive for American families. Trump has admitted the tariffs could cause “some pain” but insists they’re necessary for long-term benefits.
Walmart, which serves about 90% of American households through its thousands of stores and website, hasn’t said exactly which products will cost more or by how much. But the impact could be widespread, given how many people shop there.
Walmart also said it still expects to grow its sales this year, though they admitted that changes in trade talks make the future uncertain. A spokesperson said they’ll keep trying to offer low prices for as long as they can.
Meanwhile, some political figures have commented on the situation. Former congressman Justin Amash criticized Trump’s approach, saying it makes the Republican Party seem more like the old Democratic Party. Others pointed out that if Walmart, known for low prices, can’t avoid raising prices, then many other stores likely won’t be able to either.
The final outcome of this trade conflict with China is still unclear, but economists say if things don’t change, Americans should prepare for higher prices across many products. Talks between the U.S. and China are still ongoing during the current 90-day pause in tariff increases.
