President Trump and Walmart are locked in a public spat over tariffs and rising prices. After Walmart warned shoppers might see price hikes, Trump lashed out on social media.
He accused the company of unfairly blaming his tariffs. “Eat the tariffs,” he demanded in a May 17 Truth Social post. “I’ll be watching, and so will your customers!!!”
Walmart didn’t back down. Spokesperson Joe Pennington said the company always works to keep prices low. “We’ll keep prices as low as we can for as long as we can given the reality of small retail margins,” he told USA TODAY.
The company exceeded expectations in the first quarter. But higher tariffs could force them to raise prices. During earnings calls, executives pointed to the Trump administration’s new policies as the reason.
Chief financial officer John David Rainey was blunt. “The level of tariffs that have been proposed is pretty challenging for all retailers,” he told CNBC. “Our concern is that consumers are going to feel some of that.”
Walmart also chose not to provide a second-quarter profit forecast. It joins a growing number of companies doing the same due to tariff uncertainty.
Trump continues to claim other countries are footing the bill. But most economists say it’s U.S. businesses that pay upfront — and pass the cost to shoppers.
Walmart’s stance highlights a deepening divide. One of America’s biggest retailers is pushing back hard on one of Trump’s signature economic strategies.