Trump Tells Walmart to Absorb Tariff Costs, Not Raise Prices

WASHINGTON, D.C., May 17, 2025 — President Donald Trump criticized Walmart over the weekend after the retail giant indicated it may raise prices due to increased tariffs on imported goods.

In a post published Saturday on his social media platform Truth Social, Trump said Walmart should not attribute potential price increases to tariffs imposed under his trade policies. He argued that the company’s financial performance gives it the ability to absorb the added costs.

Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump wrote. “Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING.

Walmart executives had earlier expressed concern over the impact of elevated duties on merchandise sourced from abroad. During the company’s earnings call on Thursday, Chief Executive Officer Doug McMillon said the effects of the tariffs could be felt by consumers in the coming weeks.

There are certain categories of merchandise that we’re dependent on importing from other countries,” said Chief Financial Officer John David Rainey during the call. “Prices of those items are likely going to go up, and that’s not good for consumers.

Walmart reported $165.6 billion in revenue for the first quarter of fiscal year 2025, with U.S. e-commerce sales growing 21% year-over-year. Approximately one-third of the company’s product assortment in the United States is imported from countries including China, Vietnam, India, Mexico, and Canada.

The retailer has not specified which product categories may be affected, but analysts suggest electronics, home goods, apparel, and seasonal merchandise could see price adjustments due to their reliance on overseas sourcing.

A spokesperson for Walmart responded to Trump’s remarks with a brief statement.

We’ll keep prices as low as we can for as long as we can, given the reality of small retail margins,” the spokesperson said.

Trade Policy Developments

The exchange follows recent developments in U.S. trade policy. In April, the Trump administration increased tariffs on a broad range of Chinese goods to 145%. Earlier this week, those rates were temporarily reduced to 30% as part of a 90-day window for renewed negotiations with Beijing.

Trump has stated that the higher rates may be reinstated—or increased further—if a new agreement is not reached. The administration argues that tariffs are necessary to encourage domestic manufacturing and reduce reliance on Chinese imports. Critics, including business associations and some economists, say the cost is ultimately borne by U.S. consumers and companies.

Retail industry groups have previously warned that higher tariffs could disproportionately affect lower- and middle-income households that rely on affordable imported goods.

Business and Political Implications

The comments from Trump come at a time when Walmart is navigating broader cost pressures, including supply chain adjustments, labor expenses, and shifts in consumer spending behavior.

While the company has the scale and flexibility to manage some of the impact, prolonged trade friction may limit its ability to fully shield customers from price increases.

The public back-and-forth between Trump and one of the country’s largest retailers reflects growing tension between corporate leaders and federal trade policy makers, particularly ahead of the 2025 presidential election cycle.

Also Read: Walmart to Raise Prices Despite Tariff Relief, Warns of Higher Retail Costs