"Battling Tariffs: Walmart's Clash with Ex-Prez Trump"
Trump calls for action against Walmart, aiming at potential wrongdoings or unfair practices.
Gossip Alert Reddit Instagram Email Print Link
Walmart, America's go-to for low prices, is feeling the bite from tariffs on Chinese goods. Given this, customers might find their wallets feeling a little lighter. And it doesn't seem to sit well with former US President Donald Trump, who's been barking on his Truth Social platform.
Trump's snarls come after comments from Walmart CFO John David Rainey, who admitted that while tariff progress is satisfactory, it's still too steep. Walmart will absorb some price hikes, but suppliers and consumers alike will take a hit, Rainey revealed. By May at the latest, he warned, you can expect to see those price increases mirror themselves in stores.
Trump's bristles might stem from Rainey's chat with CNBC. Walmart's synonymous with cheap prices in the States, with a large chunk of its sales coming from Chinese imports like electronics and clothing. Increased US tariffs on Chinese goods put pressure on Walmart's supply chain, which carries political weight - especially for Trump's price-conscious base.
"Hidden Stinger"
Trump's trade policy has got US retailers in a pickle. If they up prices, they risk Trump's wrath and consumer ire. But burdening suppliers could be tricky, too. According to industry insiders, Walmart and other US retailers have recently asked some Chinese suppliers for price cuts and commandeered production out of China.
There's also a hidden danger: If Walmart demands price reductions from suppliers, it could violate contracts and cause market disruptions. The talk of potential legal troubles was raised, a source said. "If Walmart keeps insisting on shouldering the price increase," the Chinese state TV channel CCTV penned on social media, "then Walmart's demands won't be mere talk."
Source: ntv.de, jki/dpa
- Donald Trump
- Retail
Behind the Scenes:
Trump's jabs at Walmart mark a steep escalation in their tussle over tariffs. Before Trump spoke up, Walmart executives had quietly warned the president about the troubles tariffs might bring - higher prices, thinner store shelves, and so on[1][2].
Trump's criticism zeroed in on Walmart's financial performance in 2020, which he claims topped expectations. He thinks Walmart and China should endure the tariffs, instead of shifting their costs onto consumers[1].
Walmart's reactions to Trump's remarks weren't detailed, but it's safe to assume they won't be taking this jab lying down[2].
- The community policy of Walmart and other US retailers, as they negotiate with Chinese suppliers over price adjustments to counter tariff impacts, is a topic of interest in the industry and politics.
- The employment policy of Walmart could be affected if the retail giant insists on lower prices from suppliers, as potential contract violations and market disruptions might occur.
- In the context of policy-and-legislation, Trump's former employment policy and his trade policy have caused controversy among US retailers, particularly Walmart, as they grapple with increased tariffs on Chinese goods.
- The finance sector is keeping a keen eye on the ongoing clash between Trump and Walmart, given the potential effects of higher prices, thinner store shelves, and potential legal troubles on the retail industry and general-news reports.
