Walmart (WMT) shares slumped in early trading Monday after President Donald Trump said the retailer should absorb the cost of tariffs rather than pass it on to customers by raising prices.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump said in a Saturday message on Truth Social. “Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!”
Shares of Walmart slid about 2% before the opening bell. The stock is up about 9% in 2025.
Trump’s post came in response to Walmart CEO Doug McMillon warning that profits could fall this year depending on the direction of trade policy.
“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,” McMillon said during the company’s earnings call Thursday, a transcript of which was made available by AlphaSense.
McMillon credited President Trump and Treasury Secretary Scott Bessent for “progress” on lowering tariffs after the U.S. and China agreed to roll back import taxes for a period of 90 days.
“We will do our best to keep our prices as low as possible,” the CEO added.
