Trump urges Walmart to 'eat the tariffs,' not hike prices
What's the story
US President Donald Trump has slammed retail giant Walmart for its plans to hike prices, owing to the government's import duties.
He urged the company on his social media platform, Truth Social, to "eat the tariffs" instead of passing these costs onto American consumers.
Trump spoke after Walmart warned of potential price hikes on various items, including groceries and children's car seats.
Walmart issued its warning in response to the US government's decision to temporarily lower tariffs on Chinese imports.
CEO's statement
Walmart's CEO responds to Trump's criticism
Walmart's Chief Executive Officer Doug McMillon, during the company's earnings call, admitted that even at reduced levels, higher tariffs would result in higher prices.
The price hikes are set to take effect later this month.
A Walmart representative told CBS News that the company is committed to keeping prices low for shoppers.
"We'll keep prices as low as we can for as long as we can, given the reality of small retail margins," added the spokesperson.
Cost concerns
Challenges in maintaining low prices
Walmart's Chief Financial Officer John David Rainey, emphasized the challenges in maintaining low prices.
He noted that some products are becoming increasingly costly to produce because of tariffs.
Rainey indicated that a $350 car seat from China would be up by another $100 due to tariffs.
"We're wired to keep prices low, but there's a limit to what we can bear, or any retailer for that matter," Rainey told The Associated Press.
Impact on businesses
Other companies also affected by rising costs
Walmart isn't the only company struggling under tariffs. Other giants like Amazon and Apple are also grappling with supply chain issues and higher costs.
Many companies have also revised their annual forecasts downward, owing to a dip in consumer spending due to higher prices.
Trump claimed that tariffs would largely be covered by foreign nations rather than US businesses or consumers. He also warned automakers and other American firms against raising prices.