President Trump blasted Walmart on Saturday after the company warned that it will have to raise prices due to tariffs.
Trump wrote on Truth Social:
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. 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!!!”
Trump's post was in response to Walmart's first fiscal-quarter report on Thursday, which warned that its prices are going up as products covered by new tariffs start hitting shelves. Walmart Chief Executive Doug McMillon noted that more than two-thirds of the goods it sells in US stores come from the US, 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.”
Food inflation is top of mind for the retailer, as bananas, avocados, coffee, beets, cabbage, melons, pineapples, and sweet potatoes are among some of the groceries that McMillon said come from Colombia, Costa Rica, and Peru. However he did not say specifically how much the prices would rise.
Walmart CFO John David Rainey later said during a CNBC interview:
“We have not seen price increases at this magnitude, in the speed in which they’re coming at us before, and so it makes for a challenging environment.”
Walmart says that it's currently focused on back-to-school shopping, and that since tariffs are paid as soon as a product enters the country through customs, the higher tariffs are already affecting shipments.
Aside from direct price increases on products, to help offset the increased cost of goods, Walmart is reintroducing an old basket fee on its Walmart Plus Assist program, which is designed for customers who rely on government assistance. The $6.99 fee applies to orders under $35, which is something regular Walmart Plus members are already accustomed to, but it had been waived for the past few years for Plus Assist customers.
I'd imagine this is not the only fee we'll see at the retailer in the coming months. It also wouldn't surprise me if Walmart's $35 minimum becomes $50 again, as it was in 2017 and prior.