Trump warns Walmart: There is a risk of price increases due to tariffs!

Trump warns Walmart: There is a risk of price increases due to tariffs!

US President Donald Trump is critical of Walmart regarding the company's planned price increases, which are necessary as a result of US tariffs on Chinese goods. This reports der-farang.com. Trump, through his Truth Social platform, appealed for Walmart not to pass on tariffs to consumers, noting that the company made strong profits last year. This public statement by Trump could be a political strategy to avoid falling out of favor with his price-sensitive voters.

Walmart, known for its low prices, gets a large portion of its goods from China. The company's chief financial officer, John David Rainey, says Walmart is monitoring the situation and is somewhat pleased with the government's progress on tariffs. However, the pressure from high customs duties remains. Rainey points out that while some of the price increases will be absorbed by Walmart and suppliers themselves, customers will begin to feel the effects of the price increases by May at the latest.

Economic and political implications

The higher US tariffs on Chinese imports are increasing cost pressure along the entire supply chain. This could be politically explosive for Trump and his electorate who rely on low prices. Walmart will continue to play a key role in retail as price increases become visible on store shelves.

Parallel to the economic developments, the political situation in the USA also remains tense. The US Supreme Court has temporarily stopped deportations of Venezuelan migrants. This decision is based on the Alien Enemies Act of 1798 and is now referred to an appeals court. Moody's has downgraded the US credit rating from 'Aaa' to 'Aa1' while keeping the outlook stable. The US government is also planning talks with NATO allies about the withdrawal of US troops from Europe, which are scheduled to begin on June 24th after the NATO summit in The Hague.

In a different context, President Trump also expressed concern about the humanitarian situation in the Gaza Strip during his foreign trip to the Gulf States. He proposed declaring the Gaza Strip a freedom zone while Israel continues to block humanitarian aid deliveries. This leads to an impending starvation catastrophe for 2.4 million residents. Private US foundations plan to begin distributing aid in the Gaza Strip in late May.

Amid these developments, there was also a system failure at an airport in the US, resulting in a loss of contact with pilots at Denver International Airport. During these incidents, the US State Department was unable to answer questions about preferential admission of white refugees from South Africa.

The coming weeks could be crucial for the economic and political climate in the US as both Walmart and the government prepare for challenging times.