The Walmart at 355 Lincoln Ave., East Stroudsburg, is seen on April 24, 2025.
Washington D.C. – The largest U.S. retailer, Walmart, is warning that American shoppers may soon face rising prices as former President Donald Trump’s sweeping tariffs begin to take effect. The clash between Trump and Walmart over who should bear the cost of the tariffs has turned into a high-stakes economic standoff, with implications for retailers and consumers nationwide.
Trump has levied tariffs totaling over 40% on Chinese exports and enacted steep new duties on products from countries like Colombia, Costa Rica, and Peru. Walmart executives say the increases are too substantial to absorb entirely, and shoppers will begin to see price hikes as soon as the end of May — with more expected in June.
“We’re wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb,” said Walmart CFO John David Rainey. “It’s more than any supplier can absorb. And so I’m concerned that the consumer is going to start seeing higher prices.”
Trump, however, has pushed back hard. On Saturday, he posted on Truth Social: “Walmart should STOP trying to blame Tariffs as the reason for raising prices… Between Walmart and China they should, as is said, ‘EAT THE TARIFFS’ and not charge valued customers ANYTHING.”
The former president has already called prominent CEOs — including Amazon’s Jeff Bezos — to challenge price increases, and Walmart executives may be next. Treasury Secretary Scott Bessent said Sunday that he had spoken with Walmart CEO Doug McMillon and that McMillon explained the company would absorb “some of the tariffs,” as it did during Trump’s previous term. “I just wanted to hear it from him, rather than second-, thirdhand from the press,” Bessent said on Meet The Press.
Despite efforts to shield consumers, Walmart acknowledged the reality of razor-thin retail margins. The company reported $165.6 billion in revenue for Q1, and its e-commerce division just posted its first-ever profitable quarter. Still, McMillon said tariffs — notably the 145% duties on Chinese imports — have hit hardest in categories like electronics and toys.
Retail analysts warn that Walmart’s pricing strategy could serve as a bellwether. “If Walmart’s coming out and saying prices are going to rise, everyone else is going to have to follow suit,” said Neil Saunders of GlobalData.
With companies like Target, Lowe’s, and TJX reporting earnings this week, pressure is mounting across the retail sector — and consumers are bracing for what could be the first widespread tariff-driven price hikes since the trade wars of 2018–2020.
