Walmart Absorbs Tariff Costs Amid Profit Margin Growth

President Donald Trump criticized Walmart for planning to raise prices in response to tariffs he imposed, urging the retailer to absorb the costs instead of passing them on to consumers. Trump claimed Walmart, which made significant profits, should support his economic agenda by not increasing prices despite the tariffs. However, Walmart CEO Doug McMillon acknowledged that higher tariffs would lead to some price increases due to narrow retail margins. Former Walmart U.S. CEO Bill Simon downplayed the impact of tariffs on Walmart's business, highlighting the company's expanded profit margins and price deflation in some categories, suggesting Walmart could absorb tariff costs without widespread price hikes. Simon also noted that consumer confidence may be affected by negative executive commentary about tariffs but believed consumers remain resilient due to a strong jobs market and lower fuel prices. This tension reflects broader concerns about tariffs fueling inflation and consumer anxiety, despite Walmart's ability to manage tariff-related cost pressures.