Trump’s Bold Ultimatum to Big Business: Embrace Tariffs or Face Consequences | CNN Business

President Trump recently sent a clear message to major companies: he will not tolerate price hikes due to tariffs. Walmart announced it might raise prices because of increased costs from trade tensions, prompting Trump to demand they reverse this decision. He urged Walmart, alongside its Chinese suppliers, to absorb the tariff costs instead of passing them on to customers.

This isn’t the first time Trump has publicly called out companies. Earlier, he criticized Amazon for suggesting a price adjustment due to tariffs. His frustration with Amazon’s CEO, Jeff Bezos, intensified when Trump termed the proposed price change a "hostile act." Although Amazon considered charging customers for extra tariffs, they ultimately decided against it.

Trump’s tough stance continued when he threatened a 100% tariff on Mattel, known for toys like Barbie and Hot Wheels. After Mattel indicated rising prices due to tariffs, its CEO, Ynon Kreiz, explained that such tariffs would not bring toy manufacturing to the U.S. without raising prices, contradicting Trump’s promises about bringing jobs back to America.

Trump’s actions reflect a broader trend where big corporations face pressure not just from competitors but also from political figures. His statements resonate with a growing discussion about "greedflation," a term popularized during the pandemic, suggesting companies are unfairly capitalizing on economic conditions. In 2024, Walmart reported a substantial profit thanks to high demand, which Trump highlighted, arguing they could absorb tariff costs.

However, Walmart operates on thin profit margins, typically around 3%. Despite their successes, the company can’t fully shoulder increasing costs. CEO Doug McMillon acknowledged they would try to minimize price hikes but admitted some costs would inevitably be passed on to customers.

With mounting pressure, other companies like Home Depot and Target are also preparing for potential price increases. Investor sentiment is shifting, as they watch how these major retailers respond to the ongoing trade challenges. Regardless of Trump’s threats, the reality is that many American consumers will see rising prices in the near future.

In a landscape where inflation and tariffs shape economic decisions, it remains to be seen how these corporate giants will balance profit pressures with customer expectations. As these discussions unfold, experts in economics stress the importance of understanding both the corporate strategy and the consumer response.

To learn more about the current impact of tariffs on consumer prices, check recent studies from the Federal Reserve.

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