In a Thursday earnings call with investors, Walmart revealed it will have to raise prices on some products because of the trade war launched by President Donald Trump.
“We will do our best to keep our prices as low as possible. But 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,” CEO Doug McMillon said.
These price increases will affect millions of Americans.
Walmart is the world’s largest retailer, with over 4,600 stores across the U.S. alone. Millions of people visit Walmart every day to buy food, clothes, cleaning supplies, toys, and other household staples.
The trade war enveloping the world is solely the fault of Trump. He chose to increase tariffs on goods from nearly every nation, including key U.S. trading partners in China and the European Union.
A Walmart Supercenter in North Bergen, Jersey, in February 2023.
In pursuing those tariffs, Trump has lied again and again, claiming that tariffs are paid out by countries with minimal consequences for consumers.
Companies like Walmart are not absorbing the increased costs brought on by Trump’s actions. Instead, they are passing them on to their customers, and Walmart’s core customer base has traditionally been those in low- or middle-income households. This is precisely the scenario that economists warned would happen during the 2024 election cycle, when Trump brought up the tariff issue.
Since Trump announced his “Liberation Day” tariffs on April 2, global markets have been in turmoil and his approval rating has dropped. And he has been trying to clean up his mess, announcing a retreat from some of the tariffs he imposed on China and a pathetic “deal” with the United Kingdom, which has largely left the increased tariffs in place.
Trump’s tariffs aren’t just causing a problem with multibillion-dollar retailers like Walmart. Small businesses, like florists, board game makers, and others around the country are seeing their costs go up and sales drop due to the tariffs.
Even toys are being affected. Companies like Mattel say Trump’s actions are increasing the cost of materials, which will be passed on to customers.
Instead of relenting and admitting that his trade war—a repeat of failed policy from his first presidency—is a failure, Trump has offered up a cruel solution: Children should get fewer toys.
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