U.S. President Donald Trump lashed out at Walmart on Saturday, urging the retail giant to absorb the costs of import tariffs rather than pass them on to consumers, as the company warned it would begin raising prices later this month due to the ongoing trade war.

Responding to Walmart’s announcement, Trump wrote on social media:

“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. 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.”

Walmart, the world’s largest retailer, said it has always worked to keep prices low and would continue doing so despite facing what it described as “realities of small retail margins.” The company emphasized that general merchandise, much of which is sourced from China, will be affected, but efforts will be made to keep food prices stable.

“We’ll keep prices as low as we can for as long as we can,” Walmart said in a statement to Reuters. CEO Doug McMillon added Thursday that the company cannot absorb all tariff costs without affecting operations, noting that retail margins are already thin.

The president’s remarks come amid intensifying tensions with China and a broader international tariff campaign that has impacted a wide range of industries. Walmart, viewed as a barometer for U.S. consumer health, serves 255 million customers each week worldwide, with 90% of Americans living within 10 miles of one of its stores.

Walmart’s warning highlights the ripple effect of tariffs across the retail sector. While the company is known for aggressively managing supply chains and minimizing costs, executives acknowledged that the scope of recent tariffs leaves limited room for maneuvering.

Trump’s administration has maintained that tariffs are a necessary tool to correct trade imbalances and bring manufacturing back to U.S. soil. However, businesses and economists have warned that sustained trade tensions are driving up consumer prices and slowing economic momentum, with many companies scaling back financial projections.

Earlier this month, reports suggested that Amazon would begin disclosing the cost impact of Trump’s tariffs on its product pricing, though the company swiftly denied it following White House criticism.

As major retailers navigate rising import costs and uncertain consumer sentiment, Walmart’s pricing decisions and Trump’s economic messaging are likely to remain central to the broader debate over inflation, trade, and corporate responsibility.

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