Trump Tells Walmart to “Eat the Tariffs” After Price Hike Warning

​President Donald Trump fired a shot at retail giant Walmart over the weekend, demanding the company “eat the tariffs” rather than pass costs onto customers. The public rebuke came after Walmart warned it may raise prices due to elevated import duties stemming from Trump’s sweeping new trade policy.

Walmart CFO John David Rainey told CNBC that while the company is encouraged by recent trade progress—including a 90-day rollback that lowered some tariffs from 145% to 30%—duties remain “too high.” Rainey said Walmart plans to absorb some of the added costs and is pressuring suppliers to do the same, but he acknowledged that price hikes may be unavoidable in some cases.

Trump, in a Truth Social post, accused the retailer of scapegoating tariffs and told them bluntly: “Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING.”

Retailers Feeling the Squeeze
Walmart isn’t alone. Other major U.S. retailers including Microsoft, Mattel, and Ford have also warned of rising prices or have already adjusted retail tags. For Walmart, which imports a wide range of goods from electronics to fresh produce, tariffs are a direct hit to its cost structure. Despite the challenges, the company reiterated its commitment to keeping prices “as low as possible for as long as we can.”

The conflict underscores the tension between Trump’s trade policy and its downstream effects on U.S. consumers. Retailers operating on razor-thin margins are left with little room to absorb new costs—and they’re increasingly stuck between policy and profit.

Market Reaction
Despite the tariff standoff, Walmart shares rose 2% on Friday, suggesting investors are confident the retailer can weather the storm, at least in the short term. However, the company declined to provide Q2 earnings guidance, citing continued tariff uncertainty.

Bottom Line
Trump’s tariff push is creating friction not just with foreign governments, but now with domestic business titans. As inflationary pressure filters through the economy, the real question is who ends up footing the bill. For now, it’s a tug-of-war between corporate margins and political messaging—and Walmart’s checkout line is caught in the middle.







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