Former President Donald Trump delivered a sharp rebuke to Walmart over the weekend, after the retail giant warned that consumer prices could rise due to the economic impact of U.S. tariffs.
The dispute began when Walmart CEO Douglas McMillon said during a recent earnings call that the company would be challenged to fully absorb tariff costs, despite its efforts to keep prices low.Walmart imports goods from several countries affected by U.S. trade policy, including China, Canada, Mexico, Vietnam, and India, which face tariffs of at least 10%.
“Given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure,” McMillon said on May 15, referring to the company’s narrow retail margins.
Trump fired back on Truth Social Saturday, accusing Walmart of using tariffs as a scapegoat.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump wrote.
“Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China, they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING.”
“I’ll be watching, and so will your customers!!!” he added.
Trump, currently the GOP frontrunner for 2024 and a former businessman himself, has long defended the use of tariffs as a tool to pressure foreign governments—especially China—into favorable trade agreements.
His administration raised tariffs on Chinese goods to a peak of 145%, though that was temporarily reduced to 30% under a 90-day truce.
If a permanent deal with China fails to materialize, Trump has warned that tariffs could rise again, potentially further straining the U.S. retail sector.
Cuban Weighs In
Billionaire Mark Cuban also joined the discussion, advising Americans to shop now before tariffs translate into higher shelf prices.
In a post on Bluesky, Cuban wrote:
“It’s not a bad idea to go to the local Walmart or big box retailer and buy lots of consumables now. From toothpaste to soap, anything you can find storage space for, buy before they have to replenish inventory.”
Cuban warned that some companies might exploit the situation:
“Even if it’s made in the USA, they will jack up the price and blame it on tariffs.”
While some companies attempt to absorb the added costs or shift supply chains, many ultimately pass costs on to consumers.
Walmart, the world’s largest retailer, reported stronger-than-expected earnings this quarter but continues to express concern about the long-term impact of evolving trade policies on its business and its customers.
Retail Industry Impact
Retailers like Walmart, which operate on thin margins and rely heavily on imported goods, are often among the first to feel the effects of international trade tensions.