There may be a bit of an uproar over this:
President Donald Trump on Saturday said Walmart needs to stop “trying to blame tariffs” after the retail giant announced its products would become more expensive.
Walmart’s CEO said the price increases were a result of Trump’s tariffs being “too high,” particularly when it came to Chinese goods.
“We will do our best to keep our prices as low as possible. But given the magnitude of the 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,” Walmart CEO Douglas McMillon said Thursday in an earnings call.
Trump responded on Saturday, posting to Truth Social that “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!” [CNN/Business]
And who would take it in the rear if Walmart decides to accede to President Trump’s delusions of how economy and tariffs work?
Investors.
Regardless of whether it’s a public or a private company, I think the lion’s share of eating the tariff has to come out of profits; workers and logistics have been the target of cost reductions for decades. What does that leave?
The greedy investors.
How will the clash between President Trump, his delusions, and investors play out? It’s hard to say, but this may turn out to be just the first exchange in a long war between retailers and the President Trump-led xenophobes.
I don’t have much insight here, but it’ll be interesting to see how long President Trump can hold it together. His history suggests he may back down fairly quickly.
