• Trump tells Walmart to 'eat the tariffs,' urging it to absorb costs rather than raise prices.
• Walmart warns of potential price increases due to tariffs on imported goods.
• The retail giant reports it made billions last year, impacting Trump's criticism.
• Walmart’s CEO expresses concern over being unable to absorb all tariff-related costs.
• Retail prices are expected to rise despite Trump's reduction of certain tariffs.

U.S. President Donald Trump admonished Walmart on social media Saturday, insisting the retailer should "eat the tariffs" instead of raising prices blamed on duties imposed under his administration. Trump remarked, "Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain," and noted Walmart's substantial profits, stating, "Walmart made BILLIONS OF DOLLARS last year, far more than expected," according to Reuters, Newsweek, and Bloomberg.

Walmart’s remarks about potential price increases, which could affect products ranging from food to car seats, have raised alarms. The company indicated it would face challenges in absorbing the added costs due to narrow profit margins, as highlighted by CEO Doug McMillon, who participated in discussions with Trump regarding tariffs, according to SCMP and CBS News.

The president’s comments come amid a backdrop of rising inflation expectations linked to tariffs, with many analysts skeptical of the notion that foreign producers will bear the financial burden. Trump's narrative suggests Walmart and China need to bear the tariff costs rather than pass them on to consumers, as outlined in various statements including those from Walmart’s CFO John David Rainey, who remarked on the anticipated increase in prices due to tariff impacts, according to Business Insider and HuffPost.

Economists warn that ongoing tariffs, despite temporary reductions, could exacerbate inflation and consumer sentiment. Trump's aggressive tariff policy reflects his broader strategy to negotiate better trade deals, a claim that is increasingly scrutinized as Walmart and other retailers draw attention to the potential impacts on their pricing strategies. The uncertainty surrounding tariffs has led many companies, including Walmart, to reevaluate their profit projections amid shifting consumer spending, as detailed in analyses from India Times and Channel News Asia.