President Donald Trump’s public rebuke of Walmart CEO Doug McMillon on May 17, for planning price hikes due to tariffs on Chinese imports has ignited a debate about corporate responsibility. Trump urged Walmart to “eat the tariffs” rather than pass costs to consumers, a stance echoing calls for American companies to prioritize citizens over profits.

Trump’s Tariff Challenge and Walmart’s Response

On Truth Social, Trump demanded Walmart absorb the costs of tariffs, reduced from 145% to 30% on Chinese imports, stating, “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected.”

He added, “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!!!”

McMillon, during a Thursday earnings call, countered, “We will do our best to keep our prices as low as possible. 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.”

He noted, “The higher tariffs will result in higher prices,” citing impacts on electronics, toys, and food imports from countries like Costa Rica and Peru. This clash highlights the tension between government policy and corporate cost management.

Critique of Corporate Greed

Journalist Batya Ungar-Sargon sharply criticized Walmart’s planned price increases, calling them “absolutely unacceptable and infuriating” on Fox News.

She argued, “Walmart walks around bragging that 75% of the products that they sell are made here in the United States. Why are you raising prices?” Citing Walmart’s $169 billion in profits last year, she urged, “Don’t raise prices.”

“Support the president, support the agenda, support the American working class.” Ungar-Sargon framed the issue as “rampant greed” rather than politics, reflecting a sentiment that corporations exploit consumers despite massive earnings.

Online reactions are mixed, with some noting Trump’s earlier claim that China would absorb tariffs, while others echo Ungar-Sargon’s call for Walmart to prioritize affordability over profit margins, especially for its lower- and middle-income customer base.

Imperative for Companies to Support Americans

American companies like Walmart, a retail giant employing 1.6 million U.S. workers, have a responsibility to shield consumers from economic burdens, particularly during a trade war.

Trump’s directive aligns with his “America First” agenda, emphasizing that firms benefiting from American markets should reinvest profits to stabilize prices, not “gouge” customers.

Walmart’s CFO, John David Rainey, admitted a $350 car seat from China could rise by $100, a 29% hike, emphasizing the real impact on families.

Instead of passing costs to shoppers, companies should explore strategies like sourcing domestically—Walmart claims two-thirds of its goods are U.S.-made—or negotiating with suppliers, as it has pressed Chinese vendors to lower prices.

By absorbing tariff costs, Walmart could bolster the working class, align with national interests, and maintain its “everyday low prices” ethos, rather than prioritizing shareholder gains in a time of economic strain.

WATCH:

Walmart CEO Doug McMillon warns that they will be raising prices in response to President Trump’s tariffs. Shoppers will likely see price increases toward the end of May and more in June.

Batya Ungar-Sargon: “This is absolutely unacceptable and infuriating. Walmart walks around… pic.twitter.com/JpONWTgQRE

— RedWave Press (@RedWave_Press) May 16, 2025

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