‘Eat the tariffs': Trump warns Walmart after retail giant cautions steep price raises

Core Viewpoint - President Trump criticized Walmart for not absorbing the costs associated with his tariffs, suggesting that the retail giant should not pass these costs onto consumers [1][5][16] Group 1: Impact of Tariffs on Walmart - Walmart warned that prices for various products, including bananas and children's car seats, could increase due to tariffs [2][8] - Walmart's CFO indicated that a $350 car seat made in China could see a price increase of$100, representing a 29% rise [11] - The company has reported strong first-quarter sales but emphasized the limits to which it can keep prices low amidst rising costs [12] Group 2: Economic Context and Consumer Sentiment - Economic analyses suggest that tariffs could worsen inflation, with a recent consumer sentiment survey indicating that approximately 75% of respondents mentioned tariffs as a concern [2][8] - The tariffs have contributed to a decline in consumer sentiment, marking the second-lowest measure on record [8] - Trump's tariffs have created uncertainty in the U.S. economy, affecting major companies and their supply chains [11][14] Group 3: Trump's Economic Agenda - Trump insists that his economic agenda will lead to more domestic manufacturing jobs, urging Walmart to sacrifice profits for this cause [4][16] - The administration has reduced tariffs from 145% to 30% for a 90-day period, but has maintained high tariffs on various imports, including autos and steel [12][14] - Trump has called for the Federal Reserve to cut benchmark rates, despite concerns that this could accelerate inflation [16][17]