Reuters
- President Donald Trump claimed on Thursday that the punitive tariffs levied in a 19-month dispute with China had not hurt Walmart, the largest importer of goods in the US.
- But in May, Walmart said that tariffs would “lead to increased prices.”
- More than half of Walmart’s revenue comes from food and grocery sales, which might allow the retailer to manage pressure from tariffs.
- Visit Business Insider’s homepage for more stories.
President Donald Trump claimed on Thursday that the punitive tariffs levied in a 19-month dispute with China had not hurt Walmart, the largest importer of goods in the US.
“Walmart announces great numbers. No impact from Tariffs (which are contributing $Billions to our Treasury). Inflation low (do you hear that Powell?)!” the president tweeted, referring to Federal Reserve Chairman Jay Powell.
Trump often claims that foreign exporters pay the tariffs he has slapped on thousands of Chinese imports in an attempt to win fairer trade policies. But research has found that those costs largely fall on American businesses, which can either absorb them or pass them down to consumers.
The world’s largest retailer earlier Thursday posted third-quarter earnings that beat expectations. More than half of Walmart’s revenue comes from food and grocery sales, which might allow the retailer to manage pressure from tariffs.
Chief Financial Officer Brett Biggs said in a call following the financial results that he thought Walmart had “muted the impact” of tariffs “pretty well up to this point.”
Economists have warned that tariffs would increase prices and cast uncertainty on business plans. Walmart echoed those concerns earlier this year, joining hundreds of other businesses across the country.
“We’re going to continue to do everything we can to keep prices low,” Biggs said in a May call after the company reported first-quarter earnings. “That’s who we are. However, increased tariffs will lead to increased prices, we believe, for our customers.”
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