Walmart slips after Trump tells retailer to “EAT THE TARIFFS”
Walmart shares fell ~2% in early trading on Monday after President Donald Trump criticized the retailer on Saturday for “trying to blame tariffs” following its price hike announcement last Thursday.
Posting on Truth Social, Trump said, “Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING.”
Price changes at America’s largest retailer, which will likely take effect by the end of May and certainly by June, were a low point for otherwise solid earnings last week. “Given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” Walmart CEO Douglas McMillon said. Trump pointed out that Walmart made billions last year.
Both parties are, in fact, correct. In its fiscal year 2024, Walmart raked in an eye-watering $680 billion of revenue, but its net profit margin after materials, wages, admin, taxes, and everything else was just 2.9% — which is also the average that America’s largest retailer has produced over the last 20 years. Of course, when you sell as much as Walmart does, that still turns into a very tidy profit for shareholders: some $19.4 billion last year.
Many of the goods on Walmart’s shelves are sourced from countries like China, India, Canada, and Vietnam — nations that have been heavily affected by tariffs. Indeed, Reuters estimated that as many as 60% of Walmart’s shipments may have come from China in 2023, which is why the company has been putting so much pressure on its Chinese suppliers.
Price changes at America’s largest retailer, which will likely take effect by the end of May and certainly by June, were a low point for otherwise solid earnings last week. “Given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” Walmart CEO Douglas McMillon said. Trump pointed out that Walmart made billions last year.
Both parties are, in fact, correct. In its fiscal year 2024, Walmart raked in an eye-watering $680 billion of revenue, but its net profit margin after materials, wages, admin, taxes, and everything else was just 2.9% — which is also the average that America’s largest retailer has produced over the last 20 years. Of course, when you sell as much as Walmart does, that still turns into a very tidy profit for shareholders: some $19.4 billion last year.
Many of the goods on Walmart’s shelves are sourced from countries like China, India, Canada, and Vietnam — nations that have been heavily affected by tariffs. Indeed, Reuters estimated that as many as 60% of Walmart’s shipments may have come from China in 2023, which is why the company has been putting so much pressure on its Chinese suppliers.
