Key Takeaways
• On May 17, 2025, President Trump demanded Walmart “eat the tariffs” instead of raising customer prices due to new import taxes.
• Despite a temporary U.S. tariff reduction from 145% to 30% for 90 days, Walmart says price increases are unavoidable.
• Tariff disputes especially impact immigrant and low-income families relying on Walmart for essentials, potentially raising prices on everyday goods.
President Trump’s direct call for Walmart to “eat the tariffs” has placed the spotlight back on the ongoing tensions between the United States 🇺🇸 and China 🇨🇳, trade policies, and their impact on American families. The recent public dispute between a sitting president and the country’s largest retailer highlights how tariffs—extra taxes on goods from other countries—can reach beyond government halls and boardrooms and affect people each time they shop for groceries or household essentials.
Let’s break down exactly what happened, why it matters, and what it might mean for you, Walmart, and businesses everywhere.
Trump Publicly Challenges Walmart Over Tariffs and Prices
On May 17, 2025, President Trump used social media to take issue with Walmart’s announcement that it would be raising prices in its stores. In his post, President Trump strongly urged the retail giant to stop blaming tariffs for the higher prices, writing: “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain.” He claimed that Walmart “made BILLIONS OF DOLLARS last year, far more than expected” and argued that “Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING.”
President Trump’s statement was not just a suggestion—he ended his message with a warning: “I’ll be watching, and so will your customers!!!”
This direct demand came just days after Walmart told the public it would increase prices in response to the added costs from tariffs. Essentially, tariffs are extra costs placed on goods from other countries, often as a way to make these goods less attractive by making them more expensive. In this case, import tariffs have been a tool in the ongoing trade tug-of-war between the United States 🇺🇸 and China 🇨🇳.
Walmart’s Response: ‘We Can’t Eat the Tariffs’
Walmart didn’t take long to explain its position. The company pointed out that while it works hard to keep prices low, the size of the tariffs is just too large for Walmart to cover alone. Here’s what key Walmart leaders said:
- CEO Doug McMillon, during a call with investors and reporters, shared: “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 explained that raising prices was not a decision made lightly, but rather something they could not avoid. They expect the first price increases to appear by the end of May, with even higher prices coming in June.
- Chief Financial Officer John David Rainey echoed McMillon’s message in an interview, saying, “We’re wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb.”
What does this mean in simple terms? Sales in most stores, including Walmart, run on what’s called “narrow margins.” This means that after paying for products, employees, rent, and everything else, the store keeps only a small slice of every dollar spent. When tariffs increase, the slice shrinks even further. Absorbing all new costs could mean Walmart makes little or nothing—or could even lose money.
The Changing Tariff Landscape: What’s Happening Now
The timing of this dispute isn’t by chance. Just one week before President Trump’s online post, the United States 🇺🇸 and China 🇨🇳 both agreed to temporary changes in their trade policies.
- On May 12, 2025, the U.S. government lowered the tariffs on goods imported from China from 145% down to 30%. This reduced rate is set to last for 90 days.
- In exchange, China dropped its tariffs on American-made products from 125% to 10%.
Although these cuts are big, Walmart’s leaders say tariffs are still making it more expensive to bring goods into the United States 🇺🇸, especially general merchandise. This means things like clothing, electronics, toys, and household goods.
Walmart CEO Doug McMillon also pointed out that while the chain is working to keep food prices steady, many other areas—especially the ones that depend heavily on goods from China—will see price increases that can’t be avoided.
“The cost pressure from all the tariff impacted markets started in late April, and it accelerated in May,” McMillon explained. These pressures become more visible as the products from overseas reach stores and shelves in the United States 🇺🇸.
The Bigger Picture: How Trade Policy Touches Everyday Americans
To understand why this news matters, it’s important to remember just how big Walmart is. According to the company’s latest data, around 255 million people shop at Walmart stores or place online orders with them every single week. In fact, 90% of people in the United States 🇺🇸 live within just 10 miles of a Walmart location. This means when Walmart catches a cold, American shopping habits often do too.
Higher prices at Walmart can ripple out and affect many families. Because of its size and huge market share, any change at Walmart—from prices going up to product shortages—often spreads to other stores, suppliers, and even to the entire economy. Many retailers watch Walmart as a “bellwether,” or a sign of what might be coming for everyone else.
Impact on Immigrant and Low-Income Communities
For immigrant families and lower-income shoppers, Walmart is often the first and most important stop for groceries and everyday items. Even a small price increase on common products—like milk, rice, or children’s clothing—can hit these households hard. As reported by VisaVerge.com, whenever tariffs lead to increased prices, it isn’t just a business issue; it quickly turns into a real challenge for many trying to stretch each paycheck.
Communities where immigrants work—and often own and run small businesses—can also feel extra pressure if their goods become more expensive. This can make it harder for families to save money for future plans or send money home to loved ones abroad (often called “remittances”).
The Role of Tariffs in Everyday Products
Many everyday products in Walmart stores come from China 🇨🇳 or include parts made there. These can be laptops, phones, clothing, shoes, toys, and even household appliances. When tariffs go up, the cost of importing all these things rises too. If Walmart tries to “eat the tariffs”—meaning cover the new costs themselves—the company’s profits shrink, possibly leading to less hiring or even higher prices in the long run.
Chief Financial Officer John David Rainey made it clear: while Walmart does its best to protect shoppers from price hikes, “the magnitude of these increases is more than any retailer can absorb.”
Political Tensions: Tariffs as a Tool and a Challenge
Tariffs are often used as a tool by governments to push for better trading terms or to put pressure on another country. President Trump’s administration has used them to try and get China 🇨🇳 to make changes that the United States 🇺🇸 wants—from manufacturing practices to how intellectual property rights are handled.
But these government tactics can have unintended side effects. While the idea is to push China 🇨🇳 to lower trade barriers, the costs often land on American companies that buy parts or products from overseas—and, in the end, on the families who buy those goods at the store.
Walmart has made the case that while lowering tariff rates recently is helpful, it hasn’t been enough to reverse months of added costs. Many items in the store are still tied to supply chains rooted in China 🇨🇳, and sudden changes can force the company to raise prices much faster than usual.
Different Viewpoints: Who Should Pay the Price?
This clash has sparked larger debates across the country about who should foot the bill for tariffs.
- President Trump’s View: Big, profitable companies like Walmart should use their earnings to “eat the tariffs” and protect shoppers from rising prices. He sees huge profits as a buffer that can keep prices steady.
- Walmart’s View: The size of these added costs is simply too large to absorb completely without harming their ability to keep their doors open, pay workers, and invest for the future. Even thin retail profits can quickly disappear if the costs from tariffs rise too much, they argue—and these companies may pass those costs along to shoppers in the end.
This isn’t just a fight between a president and a store. It reflects a broader argument over whether businesses can and should act as shock absorbers in trade disputes, or whether policies need to be shaped so that costs never reach shoppers in the first place.
What Could Happen Next?
With the Trump administration’s 90-day reduction in tariffs, there’s still a chance for more changes depending on how talks between the United States 🇺🇸 and China 🇨🇳 develop. Both sides have something to gain by reaching a longer-term deal.
In the meantime, Walmart, other retailers, and millions of families across the country are watching closely. If higher prices become the norm, shoppers might start buying less, switch to cheaper brands, or look for discounts. Retailers could look for ways to get products from other countries, but shifting global supply chains takes time—sometimes years—not months.
It’s not just big stores like Walmart feeling the heat. Small businesses that depend on imported goods may also have to choose between raising prices, lowering profits, or rethinking what they sell altogether.
What Does This Mean for U.S. Trade Policy?
This episode may shape future U.S. trade talks—not just with China 🇨🇳, but with other countries as well. When leaders see how tariffs can quickly become a political flashpoint and a pocketbook issue for voters, they might look for different ways to protect American jobs or help U.S. businesses compete.
For a deeper understanding of how tariffs work and the current rules, check out the United States Trade Representative’s fact page about tariffs.
The Takeaway for Everyday Americans and Immigrants
At the end of the day, the most important thing to remember is how big-picture policy choices can reach into every home. Whether you support tariffs as a way to protect American workers or worry about the effect on your grocery bill, public fights like the one between President Trump and Walmart shine a light on the tradeoffs at the heart of global business.
Right now, shoppers should expect to see some prices go up at Walmart—and maybe at other stores that sell imported goods, too. Immigrant families and those on tight budgets may need to look even harder for deals or make difficult choices about what they can afford.
Walmart’s challenge—balancing fair prices for families with outside pressures from both government and the supply chain—shows just how hard it is to keep things steady in a fast-changing world.
Final Thoughts
As the 90-day window of lower tariffs counts down, all eyes will remain on President Trump, Walmart, and the next moves in the United States 🇺🇸-China 🇨🇳 discussions. The decisions made in the weeks ahead could shape prices, jobs, and access to important goods for months or even years to come.
Both shoppers and businesses are seeking solutions that won’t leave anyone stuck paying too much at the register. Whether tariffs rise again, drop lower, or disappear, it’s clear that global trade policy is everyone’s business—no matter which aisle you shop in.
For more ongoing coverage of U.S. trade policy and immigration impacts, VisaVerge.com continues to track these changes for American households, businesses, and new arrivals alike.
Learn Today
Tariff → A government tax imposed on imported goods to influence trade, often raising the price of those goods for consumers.
Retail Margin → The difference between the price retailers pay for products and the amount they sell them for, usually a small percentage.
Remittances → Money sent by immigrants in the United States to family or friends in their home countries, supporting households abroad.
Supply Chain → The entire network involved in producing, handling, and delivering products—from manufacturers overseas to retailers like Walmart.
Bellwether → A company or trend indicator that signals changes likely to occur across a broader industry or economy, such as Walmart in retail.
This Article in a Nutshell
President Trump publicly challenged Walmart to absorb tariff costs rather than passing them to American consumers. Walmart argued absorbing such large tariffs with slim retail margins is unfeasible. Even with recent tariff reductions, prices on goods—especially from China—are set to rise, affecting millions, particularly immigrant and low-income families nationwide.
— By VisaVerge.com
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