Trump demands Walmart absorb tariffs instead of raising prices

In the United States, President Donald Trump issued a warning to Walmart on May 17, 2025, instructing the large retail chain to stop blaming tariffs for potential price increases. In a post on Truth Social, Trump emphasized that Walmart, which had reported substantial profits, should absorb the costs of tariffs imposed on various imports, particularly from China. This statement followed the remarks made by Walmart CEO Doug McMillon, who indicated that the newly imposed tariffs could lead to price hikes for consumers. Walmart, known for its commitment to low pricing, responded by stating that it would strive to maintain low prices, but also acknowledged the challenges posed by the current narrow retail margins and rising costs associated with tariffs. Despite Trump's pressure, Walmart's CFO expressed concern that the company might not be able to manage all the increased costs without eventually passing some on to consumers. During the same period, the ongoing trade negotiations between the United States and international trading partners, particularly China, have heightened worries about tariff impacts and retail pricing dynamics. The situation underscores the complex interplay between government trade policies and how they affect retail prices, which may ultimately impact consumer behavior in a swiftly changing economic landscape. Consumers and investors both watch closely as the implications of these tariff discussions unfold in the coming weeks.