Walmart Inc. (NYSE:WMT) shares dropped 1.7% in premarket trading Monday, lagging behind the broader S&P 500 futures, which were down around 1%. The decline follows pointed remarks from former President Donald Trump, who publicly urged the retail giant to shoulder the burden of tariffs rather than raising consumer prices.
The comments, posted Saturday on Trump’s Truth Social platform, were a direct response to Walmart’s recent announcement that price increases were imminent. During the company’s May 15 earnings call, CFO John David Rainey noted that customers would begin noticing higher prices this month, with more significant increases expected in the months ahead due to tariff-related cost pressures.
Trump sharply criticized Walmart for attributing the hikes to tariffs and economic conditions, accusing the retailer of profiting at the expense of American consumers. “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump wrote. “Walmart made BILLIONS OF DOLLARS last year, far more than expected. 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!!!”
The post sent ripples through the retail sector, with investors concerned about the potential for heightened political pressure on Walmart’s pricing strategy and margin outlook. While other major retailers were also affected, their declines were less pronounced. Costco (NASDAQ:COST) slipped 0.7%, and Target (NYSE:TGT) was down 1.4%.
Walmart now faces scrutiny over how it navigates tariff-related cost increases amid rising political attention and inflation-sensitive consumers. Analysts are watching closely to see whether the company will adjust its pricing approach or stick to its current plan.
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