Walmart Responds To Trump's 'Eat The Tariff' Remark: '...Worked To Keep Our Prices As Low As Possible And We Won't Stop'

Amid the ongoing tariff dispute between President Donald Trump and Walmart Inc. (NYSE:WMT), the retail giant has responded to the potential impact of these tariffs on consumer prices.

What Happened: The President took to social media to chastise Walmart for suggesting that his administration’s tariffs would lead to increased prices for consumers. In a post on Truth Social on May 17, Trump insisted that Walmart should “Eat The Tariffs” rather than passing the cost onto consumers.

Walmart responded to Trump’s criticisms on May 20, with spokesperson Joe Pennington telling USA Today, “We have always worked to keep our prices as low as possible and we won’t stop.” He added, “We'll keep prices as low as we can for as long as we can given the reality of small retail margins."

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Why It Matters: This dispute follows Walmart’s warning about potential price hikes due to tariffs, as reported. The President’s directive to Walmart sparked a backlash, with economist Peter Schiff criticizing the economic logic of Trump’s stance in a post on X on Tuesday.

The tariff uncertainty comes amid a mixed first-quarter results report from Walmart. Walmart CFO John David Rainey expressed concern in a May 15 CNBC interview that proposed tariffs would significantly impact retailers, suppliers and ultimately consumers. Prices are expected to increase later this month and into June, especially for electronics, toys and food.

Walmart President Douglas McMillon stated that the company aims to keep food prices low, but tariffs on countries like Costa Rica, Peru and Colombia are driving up costs for imported goods such as bananas, avocados, coffee and roses.

Benzinga's Edge Rankings place Walmart in the 92nd percentile for momentum and the 83rd percentile for growth, reflecting its strong performance in both areas. Check the detailed report here. 

Over the past month, Walmart climbed 5.83%.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.