President Donald Trump socialized the truth to slam Walmart warning that it could raise prices due to tariffs.
"Walmart should stop trying to blame tariffs, which is why the chain raises prices across the entire chain. Walmart made billions last year, far exceeding expectations," Trump wrote. "Between Walmart and China, as said, they should 'eat tariffs' and not charge any fees to valuable customers. I'll watch it, and your customers will watch it too!!!"
This is a response to a May 15 earnings call from retailers, with Walmart CEO Doug McMillon saying President Trump’s tariffs were “too high” and warning consumers to expect prices for certain items to rise.
"We will try to keep prices as low as possible. But given the magnitude of the tariffs, we cannot absorb all the pressures given the reality of narrow retail margins, even at the lower levels announced this week," McMillan said on the call.
Walmart is particularly concerned with the increase in toys – more expensive imports from China – as well as foods such as bananas and avocados from Costa Rica, Peru and Colombia.
Walmart is not the first, nor will it be the last to alert and warn of price increases. The White House told automakers to hold the line without raising the price of tariffs. Trump issued a similar threat to Mattel after toy makers warned of the potential price of toys. "We will impose a 100% tariff on his toys, and he will not sell a toy in the United States, which is their biggest market," Trump said of Mattel CEO Ynon Kreiz.
Adidas CEO Bjørn Gulden said their shoes could be more expensive in the U.S.
“Although we have reduced China’s exports to the U.S. to a minimum, we are exposed to the very high tariffs at some point,” Gulden said. “What’s worse for us is the general increase in U.S. tariffs across all countries of origin in the U.S..”
Read more: You may have paid too much for this 1 "must" fee - your monthly bill may be raised due to Trump's tariffs. Here's how to protect your wallet now in 2 minutes
Inventory of affected items - If you expect a price increase in a specific product due to tariffs, consider buying before the price rises. This strategy is especially effective for shelf-stable or frozen items that may already be in stock and pre-priced Thai goods.
Seeking alternatives - Find domestic alternatives to expensive items and even consider buying some items that are used from the online marketplace.
Pay close attention to price increases news - Be prepared for potential price increases for imported goods and realize that you may have fewer options available. To save different products.
Evaluate your budget - Find areas that cut other places and absorb the cost increase in other places - such as saving on your car insurance or negotiating cheaper internet plans.
Walmart Chief Financial Officer John David Rainey warned that consumers may start seeing higher prices in just a few weeks.
"I'm worried that consumers will start to see higher prices. You'll start to see that, maybe at the end of (May) and then definitely more in June," Rainey told CNBC in an interview.
Whether the company "eats tariffs" or not, shoppers are already feeling biting in grocery stores and elsewhere.
This article provides information only and should not be construed as advice. It is without any warranty of any kind.