US President Donald Trump recently warned corporate executives, including those at Walmart, the nation’s largest retailer, that they should absorb higher costs resulting from his tariffs on foreign goods. The president suggested that Walmart’s profits are already substantial and that businesses can “eat” the increased expenses.
Big companies do have significant wealth compared to individuals. In fact, corporate profits reached record levels last year, both in absolute terms and as a percentage of national income. However, there is a limit to the role individual businesses play in the economy. They cannot survive if they incur losses.
Trump previously defended his tariff policies by suggesting that Americans reduce their consumption of certain goods, implying that businesses should lower their profits. The president recently posted on social media, stating that Walmart should not blame tariffs for price increases throughout its chain.
The post echoes a common tactic used when addressing perceived greed or wealth: using inflated numbers. Trump mentioned “millions,” “billions,” and “trillions” without providing specific details. This approach can be misleading and lacks concrete solutions to the problems at hand.
Source: https://www.startribune.com/ramstad-no-business-can-eat-all-the-tariffs-not-even-walmart/601336653