President Donald Trump lashed out at Walmart on Saturday, telling the retail giant to "eat the tariffs" after it warned that Trump's renewed trade war with China would soon lead to noticeable price hikes for customers.
Walmart CEO Doug McMillon stated during an earnings call that Trump's steep tariffs on imports—especially Chinese goods—were squeezing the company's margins, CNN reported. Despite efforts to keep prices low, he warned that shoppers would see increases by late May, with more significant jumps coming in June.
Trump recently reimposed tariffs as high as 145% on Chinese imports, though a temporary truce dropped them to 30%, with baseline rates set no lower than 10% during ongoing negotiations.
Trump responded to McMillon's comments in a post on Truth Social, accusing the company of passing costs unfairly to consumers. "Between Walmart and China they should, as is said, 'EAT THE TARIFFS,' and not charge valued customers ANYTHING," he wrote, warning, "I'll be watching, and so will your customers!"
Trump's rebuke followed similar remarks from Commerce Secretary Howard Lutnick, who claimed companies — not shoppers — absorb most of the tariff costs. However, economists and former officials, including Larry Summers, have widely dismissed that logic.
Meanwhile, political pressure mounts on the administration to strike a trade deal that avoids further economic fallout.
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