President Donald Trump has issued a warning to local companies, insisting that they cannot use tariffs as an excuse to raise prices. He specifically addressed Walmart, urging that prices should not climb due to tariffs. As a leading retail company, Walmart's potential price hikes in local markets due to tariff impacts have been a concern, with the company indicating possible increases starting next month.
In a social media post, Trump remarked, "Walmart needs to cease blaming tariffs for price hikes. Last year, Walmart earned billions, far exceeding expectations." He subtly referenced Walmart's ties with China and stated, "As it's said, Walmart and China need to 'Eat The Tariff' and maintain their commitment to not charging valued customers extra fees."
Also Read: Trump's Shift on India: From Zero Tariff Offer to No Rush for Deals
Company Pledges to Minimize Price Hikes!
Walmart is committed to keeping prices as low as possible, acknowledging the economic reality faced by retailers with narrow margins. According to Reuters, Walmart declared, "Given the tight retail margins, we are determined to keep prices as low as feasible."
CEO Doug McMillon stated that due to restricted retail margins, not all tariff costs can be absorbed by retailers. Nevertheless, the company is striving to ensure that prices, especially on goods imported from China like food products, will not increase dramatically.
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Rising Retail Prices in Local Markets?
Companies typically set their annual targets, but Trump's tariff strategy has compelled many to revise or retract annual forecasts. With companies like Walmart expressing their concerns publicly, it's evident how Trump's tariff policies are presenting challenges to local retailers.
