Category: Stock Market

President Donald Trump stated that Walmart (WMT) should “eat the tariffs” rather than claim that the retailer’s higher prices are caused by duties his administration imposed on imported goods. He made his remarks in response to the world’s largest retailer announcing that high tariffs would force it to begin price increases later this month.

“It’s time for Walmart to stop blaming tariffs for price increases across the spectrum.’ The president stated.

Trump claimed on social media that Walmart made billions of dollars last year, much more than anticipated.  Walmart and China should “eat the tariffs” and not impose fees on their esteemed customers.

According to Walmart, it has always tried to keep prices as low as possible and plans to continue in the future.

“We will keep our prices as low as possible amid narrow retail margins”, the world’s largest retailer said. Walmart CEO Doug McMillon said that the company could not afford the full cost of the tariffs because of its narrow retail margins.

Nevertheless, he disclosed that the business was dedicated to ensuring that tariff-related expenses on general merchandise, which is mostly imported from China, would not result in higher food prices.

Many American companies have reduced or canceled their full-year projections due to tensions between the U.S. and its commercial partners, especially China, as consumers reduce their expenditures. Walmart’s explicit statements are a good indicator of the health of U.S. consumers.