Major supermarket chain on alert: “Between it and China they should ‘eat the tariffs,’ and not charge valued customers anything”

Many voters who cast a ballot for Donald Trump did so because of his promise to bring down prices. However, now as president again, he has launched a trade war, imposing tariffs on imports from nearly every country in the world.

While he has said repeatedly that these taxes would be paid by those countries, the reality is that the tariffs are paid by companies in the United States that import the goods. Some are trying to absorb the added costs, but many have conceded that it isn’t feasible to swallow the whole amount and that they will have to raise prices including Walmart.

“We can control what we can control,” said Walmart CEO Doug McMillon during an earnings call last week. “Even at the reduced levels, the higher tariffs will result in higher prices.”

Speaking to CNBC, the Arkansas-based company’s Chief Financial Officer John David Rainey said that customers could expect to see higher prices by the end of the month “and then certainly much more in June.”

“We’re wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb,” Rainey said. “It’s more than any supplier can absorb.”

“Between Walmart and China they should… ‘EAT THE TARIFFS’”

The Walmart executives publicly stating that the retailer would have to increase prices due to tariffs did not sit well with Trump, who lashed out in a post on his social media platform Truth Social.

“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump posted. “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.”

He ended his post with a not-so-veiled threat: “I’ll be watching, and so will your customers!!!”

How much are Trump’s tariffs?

Trump’s tariff policy can be a bit confusing, especially due to his erratic flipflopping imposing tariffs and then cancelling them.

Currently, imports of autos, certain auto parts, aluminum, and steel are taxed at 25%.

Trump also imposed a 10% tariff across the board on most nations during his 2 April ‘Liberation Day’ announcement along with additional “reciprocal” tariffs. He eventually paused the latter levies for 90 days after the financial markets had a meltdown.

However, Trump left in place even higher tariffs on imports from the US’s three largest trading partners Mexico, Canada and China. Many goods from the first two face a 25% tax and goods from China will now be taxed at 30%.

That’s down from 145% after the US and China agreed to ratchet down the escalating tension as both sides became worried about the effect that the tariffs were having on trade. The lower level will be in place for 90 days while the two economic superpowers try to work things out.

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