"I Am Watching"... Trump Warns Walmart Over Price Increases
Walmart Says "Price Hikes Due to Tariffs"
Trump Warns "Don't Blame Tariffs"
US President Donald Trump has issued a warning message to Walmart, the largest retailer and distributor in the United States, urging the company to withdraw its stance on raising prices.
On the 17th (local time), President Trump posted on the social media platform Truth Social, stating, "Walmart must stop trying to blame tariffs as the reason for price increases across its chain."
He added, "I will be watching, and so will your customers."
According to foreign media reports on the 15th, Walmart will begin raising prices starting this month. John David Rainey, Walmart's Chief Financial Officer (CFO), mentioned the burden of tariffs in an interview with CNBC on the 15th, saying, "The scale and speed of this price increase are unprecedented in history."
Walmart has already increased the prices of some items due to suppliers passing on higher costs. For example, bananas, one of the most frequently sold items at Walmart, have risen in price from 50 cents to 54 cents per pound.
Until last month, Walmart posted strong results by focusing on sales of its own private label products known for high cost-effectiveness. However, the company has not yet released its profit outlook for this quarter, citing the possibility of cost losses due to tariff burdens.
In response, President Trump stated, "Walmart made tens of billions of dollars last year, far more than expected," and urged the company not to pass tariffs on to consumers. Instead, he called on Walmart to absorb the tariffs through negotiations with China, its major supplier.
This means that Walmart should not raise prices by the same amount as the tariff increases on Chinese products, but rather should choose to reduce the profits of Chinese exporters and Walmart itself.
The United States and China, which had been at odds over tariffs, agreed during high-level talks held in Geneva, Switzerland on the 10th and 11th to significantly lower the high mutual tariffs imposed on each other for 90 days. The US will reduce its tariff on Chinese goods from 145% to 30%, while China will cut its tariff on US goods by 10%, lowering it from 125%.
However, companies maintain that even a 30% tariff could still result in significant price increases for most consumers.
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Meanwhile, President Trump claimed in an interview aired on Fox News the previous day that "if I had not chosen to reach a tariff reduction agreement with China, China would have collapsed."
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