President Donald Trump took to Truth Social on May 17, 2025, to express his displeasure with Walmart's announcement of upcoming price increases, which the retail behemoth attributes to the lingering tariffs on Chinese goods. The former president accused the company of using tariffs as a scapegoat for raising prices and challenged both Walmart and its Chinese suppliers to absorb the costs rather than passing them onto consumers.
"Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain," Trump wrote. "Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!”
The conflict emerged shortly after Walmart's Chief Financial Officer, John David Rainey, discussed the financial pressures facing the company during a CNBC interview. Rainey pointed out the unusual speed and magnitude of cost increases, mainly due to tariffs, calling the situation "challenging." While acknowledging some tariff reductions under the Trump administration, he maintained that they "are still too high."
In light of these pressures, Rainey warned that customers would see price increases by the end of May, with more significant hikes expected in June. Walmart CEO Doug McMillon echoed these sentiments during the company’s earnings call, emphasizing Walmart's efforts to contain prices but admitting the challenge given the slim profit margins in retail.
In response to President Trump's criticism, Walmart released a statement reaffirming its commitment to keeping prices low. "We have always worked to keep our prices as low as possible and we won’t stop," the statement read, as reported by The Post Millennial (TPM). "We’ll keep prices as low as we can for as long as we can given the reality of small retail margins."
The tariffs at the center of this debate stem from Trump's trade policies, designed to pressure China for fairer trade terms and to boost American manufacturing. While some tariffs have been relaxed, many remain in force, continuing to impact American businesses and consumers.
The timing of Trump's admonishment is notable, coming after Walmart's recent decision to roll back its Diversity, Equity, and Inclusion (DEI) policies, which had drawn heavy criticism from conservative circles. The company also announced it would cease its involvement with the Human Rights Campaign’s annual index for LGBT workplace inclusion and discontinue its $100 million racial equity center established following George Floyd's death in 2020. These actions have placed Walmart under the conservative spotlight, making Trump's recent comments particularly resonant with his base.
As the tension between one of America’s largest retailers and the former president escalates, consumers are left to consider the potential impact on their wallets. The debate underscores the complexities of international trade policies, corporate responsibility, and the balance of shielding consumers from adverse economic effects.
