Tariffs are still high and price increases can’t stop Trump from saying “swallow it”! Walmart finally responded.

Walmart’s Q1 2025 report showed a 2.5% year-over-year revenue increase to $165.6 billion, exceeding expectations. However, the company warned that future performance could be pressured by tariffs, currency fluctuations, and global economic uncertainty. Despite recent U.S.-China tariff reductions—dropping from 145% to 30% on Chinese goods and 125% to 10% on U.S. goods—Walmart maintains that tariffs remain too high for retailers to absorb without raising prices. CEO Doug McMillon reaffirmed Walmart’s commitment to keeping prices low but acknowledged that sustained margin pressure may force increases by late Q2. CFO John David Rainey echoed this sentiment, stating that costs on items like electronics, toys, and imported food have risen significantly. In response, former President Trump criticized Walmart’s pricing stance, insisting the company and foreign suppliers should absorb tariff costs. Walmart, in turn, emphasized it will keep prices low “as long as possible,” while avoiding specific Q2 forecasts amid ongoing policy uncertainty.

***Photo Reference: https://www.chinatimes.com/realtimenews/20250521004668-260408?chdtv ***