President Trump is placing pressure on major businesses to address the increasing costs tied to his tariff policies, using populist rhetoric to promote his trade strategies to the American public.
Over the weekend, he criticized Walmart, suggesting that big retailers should “absorb the tariffs” since they made substantial profits last year. This position seems to downplay his previous assertions about foreign trade partners like China being responsible for tariff payments.
White House spokesperson Caroline Leavitt commented that China will bear some costs and noted that Walmart had forecasted price increases due to these tariffs.
Despite warnings from CEOs and economists, the president has rolled out a strategy aimed at shifting consumer costs. “It seems everyone agrees this will heavily impact low-income Americans. These taxes are regressive,” one expert observed. He appears to want to position himself as a protector of American consumers against large corporations.
Yet, others argue that such tactics are ineffective. “It’s like trying to go against gravity,” someone pointed out, emphasizing that retail margins are slim, making it difficult to cope with significantly raised tariffs.
Recently, the administration made moves to ease the trade tensions with China by reducing tariffs on some imports from 145% to 30%. In turn, China lowered its retaliatory tariffs from 125% to 10%.
Walmart’s CEO Doug McMillon indicated the company may have to raise prices starting in June, citing that “we cannot absorb all the pressure” from tariffs, even if they are only set at 30%.
Trump responded by insisting that Walmart should “cover” these extra costs.
As a longtime lobbyist noted, Trump is compelling businesses to weigh their economic and political options. Another lobbyist familiar with retail stressed that all retailers face similar challenges; if costs rise, prices must follow for profitability.
In 2025, Walmart reported over $29 billion in operating profit, which represents a profit margin of around 4.4%, with revenues totaling about $674.5 billion. With imports from China worth around $49 billion, a 30% tariff would impose around $15 billion in costs.
Some experts warn that Trump is targeting businesses with the smallest profit margins, asking them to carry the burden of rising consumer costs.
There’s a noticeable shift in populist sentiment from both political parties, with a growing disregard for the private sector’s role in delivering economic benefits to consumers. This trend has gained traction under Trump, who has transformed his party’s stance over the years.
Other companies, such as Mattel and Ford, have also indicated they will raise prices in response to tariffs. Microsoft has announced plans to increase retail prices for Xbox consoles and accessories.
However, Home Depot’s CFO stated that they intend to keep current pricing levels stable across their offerings.
Former officials from Trump’s administration argued that he isn’t accurately representing the interests of hardworking Americans, noting that many individuals hold Walmart stock in their retirement accounts. One ex-official emphasized that this could unfairly affect retirees relying on investments.
Investor Kevin O’Leary echoed the sentiment that retailers wouldn’t simply absorb the tariffs; he predicts that both consumers and retailers will experience higher costs. “The distribution of pain during price increases varies, and retailers might take on some of it, but it entirely depends on the magnitude of the increase,” he explained. “No one really knows what that looks like yet—10%, 20%?”
During his campaign, Trump claimed that tariffs would help prevent the U.S. from being exploited by foreign countries and suggested that trading partners would ultimately bear the financial responsibility, not American consumers. He labeled a specific day in April as extraordinarily significant for the nation.
However, due to stock market volatility, tariffs on trading partners were temporarily suspended amid pressure, while Trump implemented a 10% tax on all other foreign nations except China.
The administration is currently in discussions with trade partners following the suspension, and Treasury Secretary Scott Bescent noted that tariffs could revert to previous levels if negotiations fail to proceed positively.
Bescent did stress that while Walmart might absorb some tariff costs, consumers would likely still feel the impact.
