Walmart warns of price increases due to Trump's tariffs, sparking debate on who bears the cost.
From CNBC: 2025-05-20 14:48:00
Walmart initially downplayed the impact of Trump’s tariffs on its business, but later warned of price increases due to higher duties on imports. Trump responded by telling Walmart to “EAT THE TARIFFS.” This shift in tone highlights the delicate balance business leaders face in navigating Trump’s trade policy changes. Other companies like Microsoft and Subaru have also warned of price increases due to tariffs. Home Depot, however, plans to maintain current pricing levels. Target and Lowe’s will post their first-quarter results soon, shedding light on how companies are handling tariffs. Corporate engagement on tariffs has increased since Trump’s announcement, with many CEOs speaking out against the impact on business and consumer spending. Delta Air Lines and JPMorgan Chase CEOs, who previously supported Trump, are among those criticizing tariffs. Jamie Dimon of JPMorgan Chase warned that Trump’s tariffs could lead to a recession. Jamie Dimon of JPMorgan Chase shifted his stance on tariffs, calling them a “tax on the American people.” Delta CEO Ed Bastian criticized Trump’s trade policies, leading to a slowdown in airfare bookings. Walmart met with Trump about tariffs and warned of higher prices due to fluctuating policies. Trump criticized Walmart for blaming tariffs for price hikes, sparking debate on who bears the cost. Retailers like Target and Best Buy are also expected to update on tariffs’ impact and potential price increases. 1. The stock market saw a significant increase today, with the S&P 500 reaching a record high of 4,500 points. This rise was fueled by positive earnings reports from several major companies, including Apple and Amazon.
2. In other news, the unemployment rate dropped to 4.2% last month, the lowest it has been since the start of the pandemic. This decrease is largely attributed to the reopening of businesses and increased job growth in various industries.
3. The housing market continues to boom, with home prices increasing by 12% in the last year. Low mortgage rates and high demand have driven this surge, making it a seller’s market with limited inventory and fierce competition among buyers.
4. Climate change remains a pressing issue, as a new report shows that global temperatures have risen by 1.2 degrees Celsius since pre-industrial times. This alarming trend underscores the urgent need for countries to take bold action to reduce emissions and combat the effects of climate change.
Read more at CNBC: Why Walmart decided to raise prices and risk Trump’s anger