WASHINGTON (AP) — President Donald Trump broke into Walmart on Saturday and said on social media that the retail giant should eat the extra costs caused by his tariffs.
When Trump raises import taxes, he tries to ensure that skeptical publics, foreign producers pay those taxes, and retailers and automakers will absorb additional fees. Most economic analyses are deeply skeptical of these claims and warns that trade penalties can worsen inflation. Wal-Mart warned Thursday that everything from bananas to child car seats could rise.
Trump slammed the retailer in his Truth Society position, which employs 1.6 million people in the U.S. He said the Bentonville, Arkansas-based company should sacrifice its profits for its economic agenda, which he said will ultimately lead to more domestic jobs in manufacturing.
“Walmart should stop trying to blame the price of the entire chain,” Trump said. “Walmart made billions of dollars last year, far exceeding expectations. It should be said between Walmart and China that “eat tariffs” without charging any fees to valuable customers. I'll watch, and your customers will do the same!!!
The Republican president’s post reflects the increasingly awkward choices faced by many major U.S. companies, from worsening sales to the possibility of Trump’s anger. Trump also warned domestic automakers not to raise prices, even as external analyses say his tariffs would raise production costs.
So far, these tariffs have turned the mood of the otherwise resilient U.S. economy. Preliminary reading of the University of Michigan survey on consumer sentiment In the second-lowest measure on record, about 75% of respondents “spontaneously” mentioned tariffs because they largely anticipate inflation to accelerate.
In April, Walmart CEO Doug McMillon was one of retail executives who met with Trump at the White House to discuss tariffs. But despite warnings, the Trump administration is still moving forward and attacking other companies like Amazon and Apple that are struggling with disruptions in supply chains.
Walmart Chief Financial Officer John David Rainey said he believes the $350 car seats made in China will soon increase by $100, with a 29% increase in price.
“We keep the price low in wires, but there are restrictions we can afford or any retailer,” the company told the Associated Press Thursday after the company reported strong first-quarter sales.
The government recently reduced its 145% Chinese tariffs to 30% in 90 days. Trump imposes as much as 25% tariffs on Mexico and Canada due to illegal immigration and drug trafficking, hurting relations with the two largest trading partners of the United States.
Most countries have promised to reach a trade deal in the coming weeks after the general benchmark tariffs in most countries shocked financial markets in early April, due to higher import taxes on trade deficits with other countries. Trump insists that he intends to use tariffs as a source of income and that a framework agreement with the UK will largely maintain a 10% tariff rate.
Trump also imposes import taxes on automobiles, steel and aluminum, and plans to impose such import taxes on products such as medicines.
The tariffs and Trump’s reversal of how much he should charge reverse uncertainty across the U.S. economy, so Fed Chairman Jerome Powell kept the central bank’s benchmark interest rate stable until it became clearer. Powell warned that tariffs could both hurt growth and raise prices.
On Saturday, Trump repeated calls for Powell to lower the benchmark interest rate. This could lead to accelerated inflation, but the president insists that inflationary pressures have largely disappeared from the economy.
“It's too late, Powell is a too late man legend who might brag again – but who knows?” Trump posted the Truth Social.
