President Donald Trump has lambasted retail giant Walmart and toy manufacturer Mattel, claiming they are wrongly attributing price increases to his tariffs.
As more businesses warn of rising costs due to an escalating global trade war, Trump is pushing back—insisting that some of the nation's biggest corporations absorb the impact rather than pass it on to consumers.
Trump Takes Aim at Corporate America
The self-styled business-savvy president is now directly confronting corporate America, taking on Walmart, Mattel and others over their response to some of the steepest tariffs in recent decades.
Since the spring, the United States has imposed a 10% tariff on nearly all foreign imports, with even higher levies—at least 30%—applied to goods from China.
While the White House insists the tariffs are generating revenue and forcing other nations to negotiate, companies are beginning to show signs of financial strain.
Economists have long argued that tariffs tend to hurt US companies and consumers more than the countries they're intended to penalise—and now firms are starting to echo those concerns.
White House Dismisses Warnings, Doubles Down
Despite warnings from industry leaders, the White House remains defiant. 'He maintains the position that foreign countries absorb these tariffs,' said press secretary Karoline Leavitt during a Monday briefing.
The latest flashpoint came over the weekend, when Trump turned his fire on Walmart, just days after the retail giant told investors it may need to raise prices. CEO Doug McMillon said during an earnings call that the company may not be able to 'absorb all the pressure' of tariffs for much longer.
In response, Trump posted on Truth Social: Walmart should 'EAT THE TARIFFS,' arguing the company made enough profit last year to shoulder the cost. 'I'll be watching, and so will your customers!!!' he added.
Treasury Secretary Sides with Trump
On Sunday, Treasury Secretary Scott Bessent backed the president during an appearance on NBC's Meet the Press, saying Walmart would indeed "eat some of the tariffs." He referenced a recent conversation with McMillon and downplayed the retailer's warnings.
Bessent pointed out that Walmart avoided price hikes during Trump's first term when tariffs were also imposed on Chinese goods. Leavitt echoed this sentiment on Monday, saying Walmart's statements were likely legal obligations to disclose potential financial risks.
'CEOs, I believe, are legally obligated to give the most dire warnings and forecasts to their investors and stakeholders,' she noted.
Karoline Leavitt just lectured a reporter on how President Trump's tariff negotiation plan is working to perfection.
— George (@BehizyTweets) April 11, 2025
"Why would any of our allies work with us to isolate China in a trade war if we're treating friend and foe alike?"
Leavitt: "You'll have to talk to our allies… pic.twitter.com/tzk4AaYDk6
Retailers Push Back as Trade Pressure Mounts
Insiders said McMillon's call with Bessent was scheduled before Trump's Truth Social post and that the CEO did not promise any new pricing changes.
'We have always worked to keep our prices as low as possible, and we won't stop,' said Walmart spokesperson Molly Blakeman. 'We'll keep prices as low as we can for as long as we can, given the reality of small retail margins.'
The clash highlights the risks of Trump's aggressive trade policy. His goal is to use tariffs to reset global relationships, raise revenue, and boost domestic manufacturing. But as corporate resistance grows, the strain between Washington and Wall Street is only likely to intensify.
Originally published on IBTimes UK
