Tariff Tensions: Trump's Challenge to Walmart
President Donald Trump criticized Walmart for blaming tariff-induced price hikes on his administration's trade policies. Walmart, citing the high tariffs on goods from China, announced price increases. The retail giant, emphasizing its lean margins, noted it couldn't absorb all tariff costs despite its commitment to keeping prices low.
U.S. President Donald Trump has directed criticism at Walmart, urging the retail giant to absorb tariff costs rather than attributing its impending price hikes to his administration's trade policies.
The world's largest retailer recently announced that it would need to raise prices due to tariffs on imported goods. This announcement drew Trump's ire, who contended on social media that Walmart, which reported substantial profits last year, should absorb these costs. Trump specifically mentioned Walmart and China, suggesting they should 'eat the tariffs'.
Walmart CEO Doug McMillon explained that despite the company's high operational efficiency, it could not fully absorb such significant tariff costs due to the narrow margins typical in retail. Many U.S. companies face similar challenges amid the ongoing trade tensions, particularly with China, which has impacted consumer spending and economic forecasts.
(With inputs from agencies.)
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