President Donald Trump recently advised Walmart to absorb the costs of tariffs on imported goods rather than passing them onto consumers. On May 17, 2025, Trump criticized Walmart's plan to increase prices due to heightened tariffs and suggested that both the retail giant and China should "eat the tariffs" to avoid burdening shoppers, as reported by Reuters.

Walmart had announced potential price hikes starting later this month, attributing the decision to increased import tariffs. However, when asked about the President's comments, a representative for Walmart did not immediately provide a response. This development closely aligns with a significant drop in U.S. consumer sentiment, which has now plunged to its second-lowest level on record as consumers grow increasingly anxious over rising inflation and potential job losses, according to the Financial Times.

The unfolding situation poses challenges for the retail sector, with Walmart's strategy on handling these tariffs under scrutiny. How the company navigates this issue could provide insights into the retail sector's broader response to trade tensions and its ability to sustain consumer trust in an uncertain economic climate.