Trump’s Tariff War: Bullying Corporate America Over Price Hikes
- Tharindu Ameresekere
- 4 days ago
- 2 min read
US President Donald Trump is taking a hardline stance against corporations considering price increases due to tariffs, using his platform to publicly pressure major companies into absorbing the costs. After Walmart warned last week that tariffs would force it to raise prices, Trump fired back on Truth Social, demanding the retail giant reverse its decision.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices,” Trump wrote, insisting the company and China should “EAT THE TARIFFS” rather than pass costs to consumers. This marked the third time the White House has publicly scolded a corporation over tariff-related price hikes. Earlier, Amazon faced backlash for reportedly considering displaying tariff costs on its Haul platform, prompting Trump to call Jeff Bezos directly. Similarly, Mattel drew Trump’s ire after warning of higher toy prices, leading to a threat of a 100% tariff.
Trump’s aggressive approach mirrors populist rhetoric, accusing profitable companies of exploiting tariffs to inflate prices. He pointed to Walmart’s billions in earnings as proof it could absorb costs, but the retailer’s slim profit margins—below 3%—highlight the challenge. Walmart CEO Doug McMillon acknowledged the company would have to raise some prices, citing the unsustainable pressure of tariffs on already tight margins.
Despite Trump’s threats, economic realities suggest businesses will have little choice but to pass some costs to consumers. If even Walmart, with its unparalleled scale, can’t fully shield shoppers, smaller retailers will struggle more. As earnings reports from Home Depot and Target loom, investors brace for further signs of trade war fallout.
Ultimately, Trump’s bullying may delay but not prevent price hikes. The tariffs’ financial burden is too vast for corporations to shoulder indefinitely, meaning American consumers will soon feel the pinch, regardless of presidential pressure.
Comments