Walmart Inc (NYSE:WMT, ETR:WMT) and Amazon.com Inc (NASDAQ:AMZN) are facing criticism from the White House over their responses to new global tariffs, with President Donald Trump accusing large retailers of using the tariffs as an excuse to raise prices.
Critics of Trump’s trade strategy argue the situation is self-inflicted, stemming from policies his administration implemented, according to a Globe and Mail report on Monday.
Supporters, on the other hand, argue that tariffs are a long-term tool to promote domestic manufacturing and reduce dependence on foreign supply chains.
Trump publicly criticized Walmart after CEO Doug McMillon warned that the company may not be able to absorb all tariff-related costs, stating the company needs to “eat the tariffs.”
During the company’s recent quarterly earnings call, McMillon pointed to Walmart’s narrow retail margins and the scale of imports, about 40% of its inventory, as major challenges.
While reaffirming its commitment to low prices, Walmart said higher tariffs would inevitably push some costs onto consumers, possibly as early as late spring or early summer.
Amazon drew the attention of the White House after reports suggested it might label tariff impacts on pricing, a move the administration viewed as provocative.
Following discussions between Trump and Amazon founder Jeff Bezos, the company clarified that it would not explicitly display tariff-related costs to consumers.
Walmart and Amazon have become central to the debate over who should shoulder the burden of tariffs and how these costs will ultimately impact consumers.