Former President Donald Trump has warned Walmart, the nation's largest retailer, to avoid raising prices for consumers. His remarks came after Walmart CEO Doug McMillon indicated that tariffs imposed on goods from China and other nations could lead to higher prices. Trump responded by suggesting Walmart should "eat the tariffs," meaning they should absorb the cost of the tariffs themselves rather than passing them on to shoppers.
The potential for price increases stems from ongoing trade disputes between the United States and various countries, particularly China. These disputes have resulted in tariffs, which are taxes on imported goods. Companies that import goods subject to tariffs often face a choice: absorb the cost of the tariff, find alternative suppliers, or raise prices for consumers.
Walmart's size and influence mean that any decision it makes regarding pricing can have a significant impact on the broader economy. If Walmart were to raise prices, other retailers might follow suit, potentially contributing to inflation. Trump's comments reflect his desire to keep consumer prices low, even amidst ongoing trade tensions.
Trump Urges Walmart to Absorb Tariffs, Avoid Price Hikes
Former President Donald Trump has publicly cautioned Walmart against increasing prices for consumers. This statement follows remarks from Walmart's CEO suggesting potential price increases due to ongoing trade disputes and tariffs imposed on goods from China and other countries. Trump advised the retailer to "eat the tariffs" rather than pass the costs onto shoppers. The exchange highlights the continued economic impact of trade policies on major retailers and consumers.
Source: Read the original article at CBS