President Donald Trump is clashing with Walmart over tariffs, warning the retailer not to raise prices due to increased import taxes. In a social media post, Trump said Walmart should “eat the tariffs” and absorb the costs, rather than passing them on to customers.
The warning comes as many major American companies face pressure from Trump’s tariffs, which have darkened the mood of an otherwise resilient US economy. Walmart CEO Doug McMillon met with Trump at the White House in April to discuss tariffs, but the administration has since attacked other companies like Amazon and Apple that are struggling with supply chain disruptions.
Walmart chief financial officer John David Rainey estimates that car seats made in China will soon cost an additional $100, a 29% price increase. The company reported strong first-quarter sales despite the challenges posed by tariffs.
Trump’s approach to trade policy has generated uncertainty across the US economy, with Federal Reserve Chair Jerome Powell warning that tariffs can both hurt growth and raise prices. Trump has called on Powell to cut benchmark rates, which could cause inflation to accelerate.
Source: https://apnews.com/article/trump-tariffs-walmart-inflation-import-taxes-e2012e0d9e242b0be0b9474aa58d41fd