President Donald Trump was torn to Walmart on Saturday and said on social media that retail giants should eat the extra costs generated by his tariffs.
Just like Trump hasImport tax has been jacked uphe tried to assure the skeptical masses that foreign producers would pay their taxes, and that retailers and automakers would absorb the additional costs. Most economic analyses are deeply skeptical of these claims, warning that trade punishments will exacerbate inflation.Walmart warned ThursdayThat everything from bananas to children’s car seats could raise prices.
Trump was attacked by a retailer employing 1.6 million people in the United States in his true social post. He said the Bentonville, Arkansas-based company should sacrifice its profits for its economic agenda that ultimately leads to more domestic work in manufacturing.
“Walmart should stop trying to denounce tariffs as a reason to raise prices across the chain,” Trump posted. “Walmart made billions of dollars last year. More than I expected. Walmart and China won’t charge valuable customers as it is said to “eat tariffs.”
Posts by the Republican president reflect a series of increasingly troublesome choices many major American companies face as a result of his tariffs, from worsening sales to the possibility of causing Trump’s rage. Trump has similarly warned domestic car manufacturers not to raise prices.Increases production costs.
So far, these tariffs have darkened the mood of an otherwise resilient US economy. Preliminary reading ofUniversity of Michigan Consumer Sentiment SurveyFriday slipped onto the second lowest scale on record, with about 75% of respondents referring to tariffs “voluntarily” and largely anticipating inflation to accelerate.
In April, Walmart CEO Doug McMillon was one of the retail executives who met with Trump at the White House to discuss tariffs. But despite the warning, the Trump administration has moved forward and attacked other companies such as Amazon and Apple, who are struggling with supply chain disruptions.
Walmart Chief Financial Officer John David Rainey said he believes a $350 car seat made in China will soon cost an additional $100.
“We’re wired to keep prices low, but there are restrictions on what we can withstand, or retailers because of that,” he told the Associated Press on Thursday after the company reported strong first-quarter sales.
The administration recently reduced 145% tariffs in China to 30% for a 90-day period. Trump has hit Mexico and Canada’s tariffs at 25% due to illegal immigration and drug trafficking, damaging relations with the two largest US trading partners.
There is a universal baseline tariff of 10% in most countries as Trump has promised to reach trade transactions in the coming weeks after shocking financial markets in early April by charging higher import taxes based on trade deficits with other countries. Trump intends to preserve tariffs as a source of revenue, and claims that the framework agreement with the UK claims that it maintains a 10% tariff rate, primarily.
Trump also places import taxes on cars, steel and aluminum, and will do so on pharmaceutical drugs, among other products.
The tariffs and Trump’s own reversal of how much he should charge have created uncertainty across the US economy, so Federal Reserve Chairman Jerome Powell stabilized central bank benchmark rates until it became more clear. Powell warns that tariffs can damage growth and raise prices.
On Saturday, Trump called on Powell to cut his benchmark rate. It could accelerate inflation, but the president argues that inflationary pressures have almost disappeared from the economy.
“Powell, too late, is a legendary man for being too late, but will probably blow it off again — but who knows?” Trump posted to the Society of Truth.
This story was originally featured on Fortune.com.
