What kills me about the way “but the price of eggs!” took over the 2024 election, is that the American economy was outperforming all other countries coming out of the pandemic. The total lack of perspective Americans showed, whether through honest or willful ignorance, is mind-boggling. So here we are, not a full two months since Economy Don flashed his bigly tariff chart from the White House Rose Garden, and it’s all a f–king mess. At this point I’d usually say, “If only someone had explicitly said this is what would happen…” except even that gloating refrain has lost its satisfaction (yet another thing this administration has robbed from us). Last month, Amazon floated marking the cost of the Trump Tariffs in their product listings, until Trump pitched a fit and his bro Bezos immediately backed down. Well, Walmart isn’t going that far, but their CEO did confirm this week that higher prices will be coming as soon as later this month, all thanks to the tariffs:
The company’s CEO Doug McMillon said Thursday many items on the stores’ shelves are costing more for the company, and will start costing more for shoppers too. Walmart’s finance chief said higher prices were likely to come as soon as this month and into the summer.
Speaking to investors after releasing quarterly earnings, McMillon said Walmart will work to protect food prices as much as possible.
“We will do our best to keep our prices as low as possible,” he said. “But 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 in retail.”
He thanked President Trump and Treasury Secretary Scott Bessent “for the progress made recently” with a deal that temporarily eased China tariffs to 30% from 145%. McMillon said he hoped for a longer term agreement for even lower taxes on Chinese imports. And he said he hoped the government would lift tariffs on food items, such as bananas and avocados, that don’t really grow in the U.S. but face the universal 10% tariff when imported.
Retail sales are a key pillar of the U.S. economy, and in recent months, some people have begun tightening their budgets in anticipation of higher prices from additional tariffs. People are being selective in choosing where to spend more, such as outings at restaurants and bars, and that has helped overall retail sales from sinking and instead remaining flat in April compared to March, new government data on Thursday show.
“Consumers overall have the money, they’re just losing the will to spend it,” Navy Federal Credit Union economist Robert Frick said in a statement. “Nerves over tariffs and even the jobs market have Americans generally saving more and spending less, but consumption is still increasing, however slightly.”
Walmart, for its part, reported sales rose 4.5% in the latest quarter, between February and April. Executives said about two-thirds of Walmart’s U.S. goods are grown, made or assembled domestically. But the retailer still imports from dozens of other countries, especially electronics and toys from China.
McMillon described numerous ways Walmart is pushing to avoid higher prices. In some cases, like flowers for Mother’s Day, the company and its suppliers have moved to absorb higher import costs. Or Walmart might spread the cost hike of one item with smaller price increases across numerous items in the same department. The company has also been moving some production out of China, and it’s pushed suppliers to change materials — for example, skipping tariffed aluminum in favor of fiberglass without tariffs.
…The big theme continues to be uncertainty, as the Trump administration negotiates individual deals with different countries and shifts its stance on tariffs. The trade war ramped up at the beginning of April, so price hikes have not yet affected the cost of living, with inflation easing last month.
“Consumers overall have the money, they’re just losing the will to spend it.” What a loaded sentence! On my first read, the yuckster in me replied, “That’s not all we’re losing the will to do.” But reading it over again, is it a dig at us consumers? Like, “You really could spend more of your money, if you just tried harder!” Is spending shame a new mind game they’re trying out to trick us into buying more? Because I have a lifetime of indulgent/impulsive purchases to prove that I need no help in that direction, thankyouverymuch. All I know is, I sure do feel sorry for all the kids who’ll have to suffer with only two dolls for Christmas this year, as opposed to the four for each night of Hanukkah that I got as a girl. But that’s what happens when you put the world’s greatest economy into the baby-fisted hands of a clown who doesn’t even know they make gold paint these days. Enjoy your eggs, everyone.