Donald Trump just lit a fire under Walmart with a bold three-word command: “EAT THE TARIFFS.”
After Walmart executives confirmed that price hikes are on the way due to new global tariffs, Trump made it clear he’s not impressed, and neither are millions of American shoppers.
Last week, Walmart’s top leadership gave a public heads-up: prices at stores across the country will rise. CFO John Rainey said some price increases will start hitting shelves at the end of this month and warned it’s going to get “much more” intense in June.
Walmart CEO Doug McMillon tried to strike a balancing tone, stating the company would do its best to hold the line. But even he admitted that despite some tariff reductions, Walmart can’t eat all the cost pressure due to “narrow retail margins.” Translation: Customers will be seeing higher prices whether they like it or not.
In response, Trump took to Truth Social and blasted Walmart and China in one shot. He posted:
“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!”
That post has already sent ripples across the retail and political landscape.
Former Walmart CEO Bill Simon criticized the current team’s plan to raise prices. He believes the company’s existing margins give them enough room to maneuver and avoid passing those costs down to regular Americans. In his view, Walmart is overreacting.
But not everyone agrees. Jason Furman, an economist at Harvard, says Walmart doesn’t really have a choice. He told The Wall Street Journal that this isn’t some scheme to milk customers, it’s a result of economic pressure from tariffs that even retail giants can’t escape.
And if you’re wondering which items are about to get pricier, prepare yourself. The list includes essential goods and family favorites, from fruits to cars and even prescription meds. Check out the table below for a quick reference on what’s about to cost more:
| Category | Products Affected |
|---|---|
| Food & Beverage | Bananas, Coffee, Tea, Avocados |
| Apparel & Footwear | Clothing, Sneakers |
| Home Goods | Furniture, Washers, Dryers |
| Entertainment | Video Games, Toys |
| Transportation | Foreign-made Cars |
| Healthcare | Pharmaceuticals |
| Building Materials | Housing Materials |
Around 60% of Walmart’s products are imported from China, making the company especially vulnerable to tariff impacts. While Treasury Secretary Scott Bessent confirmed Walmart will absorb some of the new tariff costs, he was blunt, some of it will be passed to consumers.
Rainey admitted that Walmart’s “everyday low prices” strategy is getting tested hard. He said:
“The magnitude of these increases is more than any retailer can absorb… It’s more than any supplier can
absorb… So I’m concerned that [the] consumer is going to start seeing higher prices.”
Experts believe Walmart’s public admission now gives cover for other retailers to hike prices too. With inflation already eating into household budgets, Trump’s social media post just added more fire to a debate that’s already red-hot.
Will Walmart take Trump’s advice and “eat the tariffs”? Or are American shoppers about to face a fresh round of sticker shock this summer? One thing’s for sure, everyone’s watching.
