Washington (AP) – President Donald Trump torn Walmart on Saturday, saying on social networks that the retail giant should eat the additional costs created by his prices.
As Trump has it reported the import taxesHe tried to ensure a skeptical audience that foreign producers would pay for these taxes and that the retailers and car manufacturers would absorb additional expenses. Most economic analyzes are deeply skeptical of these affirmations and have warned that commercial sanctions would aggravate inflation. Walmart warned Thursday That everything, from bananas to children’s car seats, could increase the price.
Trump, in his social post, was unleashed at the retailer, which employs 1.6 million people in the United States. He said that the company, based in Bentonville, in Arkansas, should sacrifice its profits for its economic program which, according to him, will finally lead to more interior jobs in manufacturing.
“Walmart should stop trying to blame prices as a reason for increasing prices throughout the channel,” said Trump. “Walmart won billions of dollars last year, much more than expected. Between Walmart and China, they should, as it is said,” eat the prices “, and do not charge customers appreciated. I will look, just like your customers !!!”
The publication of the Republican president reflected the series of increasingly awkward choices with which many large American companies faced following his prices, from the deterioration of sales to the possibility of shaking the anger of Trump. Trump has also warned national car manufacturers not to increase their prices, even if external analyzes say that its prices increase production costs.
Until now, these prices have darkened the mood of an American economy otherwise resilient. Preliminary reading of Michigan University survey on consumer feeling Friday, slipped to its second, the lowest, ever recorded, with around 75% of respondents mentioning “spontaneously” prices because they were largely expected to accelerated inflation.
In April, the CEO of Walmart, Doug McMillon, was one of the retail leaders who met Trump in the White House to discuss the prices. But the Trump administration has advanced despite the warnings and attacked other companies such as Amazon and Apple who have trouble with the disturbances of their supply chains.
Walmart’s financial director John David Rainey said he thought that $ 350 in car seats made in China will soon cost an additional $ 100, an increase in 29%.
“We are wired to maintain low prices, but there is a limit to what we can bear, or any retailer elsewhere,” he told the Associated Press on Thursday after the company announced solid sales in the first quarter.
The administration recently reduced its 145% prices on China to 30% for a period of 90 days. Trump has placed prices of up to 25% on Mexico and Canada due to illegal immigration and drug trafficking, harming relations with the two largest American business partners.
There is a universal reference rate of 10% on most countries while Trump promises to conclude trade agreements in the coming weeks after having shocked the financial markets in early April by invoicing higher import taxes depending on trade deficits with other countries. Trump insists that he intends to preserve prices as a source of income and that a framework agreement with the United Kingdom would largely maintain the rate of 10% in place.
Trump has also placed taxes on imports on cars, steel and aluminum and plans to do so on pharmaceutical drugs, among other products.
Trump’s prices and reversals on the amount he should charge has generated uncertainty in the American economy, so that the president of the federal reserve Jerome Powell held the reference rates of the stable central bank until there is more clarity. Powell has warned that prices can both harm growth and increase prices.
Trump repeated his calls to Powell on Saturday to reduce reference rates. This could make inflation accelerate, but the president argued that inflationary pressures have largely disappeared from the economy.
“Too late Powell, a legendary man to be too late, will probably blow him up – but who knows ???” Trump posted on Truth Social.
