Trump Declares War on Walmart^®

Trump showing a chart with reciprocal tariffs. Photo courtesy of The White House. Public domain,

Walmart^® just announced that they are raising prices — and Trump is furious. With a flurry of Truth Social posts, the president unloaded on the retail giant for daring to hike costs tied to his own sweeping 30% tariffs on Chinese goods. His demand? That Walmart — which pulled in $4.45 billion in profits last quarter — "EAT THE TARIFFS" or brace for consumer backlash, according to WFLA News Channel 8.

And just like that, the most powerful name in politics is going head-to-head with the biggest name in American retail — while everyday shoppers watch their grocery bills climb.

Trump's Fury Erupts as Walmart Blames Tariffs

President Trump accused Walmart of using tariffs as an excuse to gouge customers. He claimed the company shouldn't blame policy for price increases. Instead, he argued Walmart and China should absorb the added costs themselves — not pass them along to hardworking American families.

"Between Walmart and China they should, as is said, 'EAT THE TARIFFS,' and not charge valued customers ANYTHING," Trump wrote on Truth Social on May 18, as reported by WFLA News Channel 8.

The public scolding came just two days after Walmart announced that prices would begin rising on goods like groceries, electronics, and household essentials. The company blamed the increases on new import costs triggered by Trump's trade agenda, which includes a 30% tariff on Chinese products — lowered from a previous high of 145%.

Walmart Says It's Feeling the Pinch

Despite reporting $4.45 billion in first-quarter profits, Walmart's leadership insists that the business can't absorb the steep tariff hikes without passing some of the burden to shoppers.

Walmart CEO Doug McMillon told investors that while the company would "do our best to keep our prices as low as possible," it couldn't fully shield consumers from rising import costs, as reported by All Recipes.

In an interview with the Wall Street Journal, Walmart Chief Financial Officer John David Rainey added that the "the magnitude and speed at which these prices are coming to us is somewhat unprecedented in history," of the cost increases Walmart is facing, as reported by WFLA News Channel 8.

Even with the White House granting a temporary 90-day reduction of tariffs on Chinese imports — from 145% to 30% — Walmart said that's still too high to avoid raising prices.

Populism vs. Profits

At the heart of this spat is a classic Trump-style power play. The president is demanding that corporate America — not every day Americans — bear the cost of his economic policy. That message resonates with Trump's base: working-class voters who rely on Walmart's low prices to make ends meet.

By telling Walmart to "eat the tariffs," Trump is reinforcing his anti-elite message while sidestepping the economic pain that tariffs can cause. His supporters don't want to hear that their wallets are taking a hit because of political decisions — and Trump is making sure the blame lands squarely on Big Business.

But the economics aren't so simple. Walmart warned that without further tariff relief, prices on a wide range of products — including food — will rise as early as late May and increase further in June. That includes staples like bananas, avocados, and coffee.

Meanwhile, the company's profits dropped from $5.10 billion in the first quarter of 2024 to $4.45 billion this year — a notable dip that executives attribute in part to tariff costs.

Broader Economic Warning Signs

According to Yahoo Finance, the Trump administration's tariff decisions aren't just affecting Walmart. Shipping activity at the Port of Los Angeles — the nation's busiest container hub — plunged 30% in early May, as trade tensions disrupted the flow of goods from China.

JPMorgan^® CEO Jamie Dimon warned that markets may be underestimating the long-term impact of these trade policies. Citigroup^® CEO Jane Fraser echoed those concerns, pointing to delayed investments and inflation risks.

Still, the administration remains firm. Treasury Secretary Scott Bessent defended the tariffs, calling Walmart's warnings a "worst case scenario" and saying that rates would return to their earlier highs if trading partners fail to negotiate new agreements during the current 90-day window.

Summer of Inflation?

This standoff between Trump and Walmart sets the stage for a tense economic summer. If prices continue to climb — and they likely will — consumers may look for someone to blame.

Trump is betting it won't be him.

By publicly pressuring Walmart to absorb the impact of his own policies, the president is shifting responsibility onto corporate America — even if it means alienating one of the largest employers and most relied-upon brands in the country.

But Walmart has its own pressures. Investors want margins. Suppliers want certainty. And customers? They want prices to stop going up.

As this economic game of chicken unfolds, shoppers will be the ones footing the bill — unless someone blinks first.

References: Trump berates Walmart over price hikes: 'EAT THE TARIFFS' | Tariffs live updates: China iPhone exports to US plunge to 14-year low amid tariff tensions | Walmart Just Announced It Expects to Raise Prices Due to Tariffs