President Trump took to social media on Saturday to criticize Walmart for its recent decision to increase prices, which he attributed to the costs stemming from the administration’s trade policies.
“Walmart shouldn’t be using tariffs as an excuse to hike prices across the board,” Trump stated. He pointed out that the retail giant made significant profits last year.
“Between Walmart and China, they shouldn’t be imposing extra charges on their valued customers,” he continued. “I’m keeping an eye on this, and so should you!”
This statement followed Walmart’s announcement on Thursday that it would begin raising prices next month in response to expenses linked to Trump’s extensive tariff strategy.
A Walmart representative mentioned, “We’ve always aimed to keep prices as low as we can, but the situation is changing.” They emphasized the challenges posed by maintaining retail profit margins.
The retailer did not provide an earnings forecast for the first quarter of the year, citing uncertainty about the economy, which analysts predict could negatively affect consumers in the U.S.
Walmart CEO Doug McMillon also expressed worries about tight profit margins during a Thursday briefing, while acknowledging that the company cannot absorb all the financial pressures from the tariffs.
In terms of earnings, Walmart reported a decline from $51 billion or 63 cents per share last year to $4.45 billion or 56 cents per share this quarter, according to the Associated Press.
Trump’s remarks came after the administration made changes earlier in the week, reducing tariffs on Chinese imports from 145% to 30% for a period of 90 days. In retaliation, China cut its tariffs from 125% to 10%.
This represents yet another significant shift in trade policy from the Trump administration, including exemptions for certain Chinese tariffs. There were also 25% tariffs applied to Canada and Mexico, many of which have reverted to previous rates, alongside a 90-day halt on “mutual” tariffs affecting various countries.
Updated at 12:10pm
