US retailers are engaging in a price war over imported goods, amid rising tariffs imposed by the Trump administration. Walmart CEO Doug McMillon warned that increased tariffs would lead to higher prices during their latest earnings call.
Two days later, President Donald Trump suggested that companies should “eat the tariffs” and absorb the costs themselves. This idea has been met with skepticism from retailers like Walmart, which may be hesitant to take on more debt.
The tariffs’ impact on American brands is becoming increasingly apparent. A recent study found that Trump’s trade policies are hurting iconic US products, including Coca-Cola and Jack Daniel’s. The negative effects of the tariffs are set to have far-reaching consequences for US businesses and consumers alike.
Source: https://www.economist.com/business/2025/05/21/big-box-v-brands-the-battle-for-consumers-dollars