President Trump on Saturday threatened Walmart over its plan to raise prices in the face of tariffs, demanding it absorb the costs instead.

Trump threats Walmart matter 

Trump threatens Walmart as administration facing the risk of looming tariff-driven inflation, has turned to publicly threatening retailers to keep prices in check.

Catch up quick

On Thursday, Walmart said it could no longer hold the line on costs, even with tariffs on China dropping to 30% from 145%, and would have to start raising prices on some items as soon as this month.

• The idea that costs were approaching a point of no longer being easily absorbed wasn’t news to the administration, per a source close to the company — it was something the White House had heard from Walmart, and hadn’t pushed back on.

What they’re saying: Trump took to Truth Social Saturday morning to blast the move.

• “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected,” Trump wrote.
• “Between Walmart and China they should, as is said, “EAT THE TARIFFS,” and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!”

The intrigue: Walmart’s move, and Trump’s response, come less than a month after Walmart’s CEO and other key retail executives privately warned the president that tariffs would soon lead to empty shelves and higher prices.

• That warning was seen as key in a subsequent softening of the president’s tone on trade matters.

Yes, but: Just days later, the White House blasted as “hostile and political” a report that Amazon was considering showing some customers the impact of tariffs on the prices of goods (a plan Amazon denied).

Between the lines: Last weekend, Commerce Secretary Howard Lutnick ridiculed what he called “silly arguments” that consumers would pay higher prices due to tariffs.

• Only four days later, the nation’s largest retailer said that was exactly what they’d do.

What to watch

Walmart didn’t say this week precisely when prices would rise, how much or exactly on what, leaving it some wiggle room — though the changes are expected to start showing up in the next couple of weeks.

• “We have always worked to keep our prices as low as possible and we won’t stop. We’ll keep prices as low as we can for as long as we can given the reality of small retail margins,” a Walmart spokesperson told Axios.