On Saturday, President Donald Trump issued a warning to Walmart regarding potential price increases, following statements made by the retailer suggesting that it may raise prices due to ongoing tariff uncertainties. In a post on Truth Social, Trump criticized Walmart for considering price hikes and urged the company to absorb tariff costs, stating that it generated significant profits in the previous year and should not pass costs onto consumers.
Walmart CEO Doug McMillon had previously remarked that while the company would strive to keep prices low, the impact of tariffs on narrow retail margins could complicate this goal. Following the company’s first-quarter earnings report, which met market expectations, McMillon highlighted the challenges posed by the current economic environment.
In response to Trump's comments, Walmart reiterated its commitment to maintaining low prices despite pressures from tariffs. The company’s Chief Financial Officer, John David Rainey, noted that consumers might begin to see price increases as early as the end of May. Walmart's latest figures show that approximately two-thirds of its U.S. spending is directed towards products made domestically, while the remaining third is sourced globally, with China and Mexico being key suppliers.
Despite the challenges, Walmart reported strong performance in e-commerce, achieving profitability for the first time in a full quarter. Sales at U.S. stores also showed growth, although there was a noted decline in certain higher-margin categories such as electronics and home goods. The company expressed confidence in its ability to grow net sales in the upcoming quarter but acknowledged the unpredictability of the current trade landscape.