DONALD Trump has issued a blistering warning to Walmart chiefs after bosses told shoppers they should expect to see price rises.
Last week, execs mapped out a timetable as to when shoppers should see higher costs in supermarkets.
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Trump has since waded into the price dispute and warned that he’ll be watching.
And, he appeared to have a three-word instruction to bosses.
“Between Walmart and China they should, as is said ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING,” he posted on Truth Social.
“I’ll be watching, and so will your customers!”
Items that could see a price hike include bananas and toys.
Around 60% of the retailer’s goods are imported from China.
Doug McMillon, Walmart’s CEO, revealed the retailer would do “its best” to keep costs down.
“But given the magnitude of tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” he said.
Walmart CFO John Rainey warned some price changes will come into force at the end of this month.
He warned customers prices will increase “much more” in June, as reported by CNBC.
Rainey appeared to issue a frank warning to shoppers.
“We’re wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb,” he admitted.
“It’s more than any supplier can absorb.
“And so I’m concerned that [the] consumer is going to start seeing higher prices.”
Scott Bessent, the Treasury Secretary, revealed Walmart will “absorb” some of the tariffs.
“Walmart will be absorbing some of the tariffs,” he told CNN on Sunday.
“Some may get passed on to consumers.”
Walmart stressed it would ensure prices are kept low for as long as possible.
Bill Simon, the retailer’s ex-CEO, criticized plans to hike prices.
He believes Walmart’s margins give the company flexibility not to increase prices.
“That sort of gives them room in my view to manage any tariff impact that they would have,” he told CNBC.
Meanwhile, retail experts believe Walmart’s admission has given other companies the excuse to increase prices.
But, Jason Furman, a Harvard economist, told The Wall Street Journal that Walmart has essentially been pinned into a corner.
“This isn’t Walmart taking advantage,” he said.
“It’s Walmart having no choice.”
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