US President Donald Trump has slammed Walmart for raising prices in its supermarkets on the grounds that they are driven by tariff increases.
In his post on Truth Social, Trump urged the retail giant to not burden customers with inflated prices but rather pay the tariff costs themselves.
Trump stressed that Walmart and China should absorb the full cost of tariffs without charging customers extra and will monitor the action.
The statement came after Walmart CEO Doug McMillon admitted in a statement with CNBC that the company was unable to fully absorb the cost pressure due to excessively high tariffs, especially from China.
Although the tariff rate was temporarily lowered from 145% to 30%, McMillon stressed that retail profit margins are too narrow to absorb everything.
Walmart expects prices to start rising by the end of May and become more pronounced in June, involving items such as imported food, toys, electronics, baby items and home furnishings.
While Trump claims that companies or producing countries should bear the tariffs, economists insist that the real burden will ultimately be borne by consumers – especially low-income earners who are Walmart’s main customers.
Trump’s public pressure on Walmart reflects his tough trade war strategy, but the real risk may lie with the people themselves.
Tariffs may go up, but not everyone can afford them. Who will fall first?
