President Donald Trump is stepping up pressure on major American companies, urging them not to pass on the cost of tariffs to consumers—even threatening public backlash for those that do, CNN reports.
In a series of remarks and social media posts, Trump has made clear that he expects corporations to “eat the tariffs” rather than raise prices amid ongoing trade tensions.
The most recent target of Trump’s criticism was Walmart, which warned last week that it would be forced to increase some prices due to higher costs stemming from tariffs. In response, Trump took to Truth Social on Saturday, accusing the retail giant of unfairly blaming tariffs and calling on the company to reverse its decision.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices,” Trump wrote. “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!”
This marked the third time in recent weeks that the former president or his administration publicly criticized a large corporation over tariff-related price increases. On April 29, the White House objected to reports that Amazon was considering displaying tariff costs alongside product prices. White House Press Secretary Karoline Leavitt labeled the potential move “hostile and political,” and Trump personally called Amazon founder Jeff Bezos to object. Amazon later clarified that the plan had not been approved.
Just days later, Trump targeted toy manufacturer Mattel after CEO Ynon Kreiz warned that tariffs would likely lead to higher prices for consumers and would not bring manufacturing jobs back to the US Trump responded by threatening a 100% tariff on Mattel products, warning that such a move could effectively lock the company out of its largest market.
Trump’s stance appears to echo a broader populist message previously voiced by former President Joe Biden, who had accused companies of “greedflation”—raising prices under the guise of inflation. Trump, however, is framing his argument around corporate profitability, suggesting that companies should absorb tariff-related costs rather than burden consumers.
In Walmart’s case, while the retailer did post strong profits in 2024, its margins remain tight by industry standards. With a net profit margin of less than 3%, CEO Doug McMillon said during an earnings call that the company would absorb some of the increased costs, but could not avoid raising certain prices.
“We will do our best to keep our prices as low as possible,” McMillon said. “But given the magnitude of the tariffs… we aren’t able to absorb all the pressure given the reality of narrow retail margins.”
Trump’s pressure campaign comes as US companies prepare for potentially broader impacts from escalating trade tensions. Analysts expect more firms may soon announce price increases, especially if Walmart—widely known for its scale and pricing power—is unable to fully shield consumers.
