‘Eat the tariffs’: Trump slams Walmart over warning to consumers — but the costs could still hit your wallet

This came in response to the retailer's earnings call on May 15th, where Walmart CEO Doug McMillon said President Trump's tariffs are "too high" and warned consumers to expect price hikes on certain items.

“We will do our best to keep our prices as low as possible. 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,” McMillon said on the call.

Walmart (NYSE:WMT) is specifically eyeing increases on toys — made more expensive to import from China — and food items like bananas and avocados from Costa Rica, Peru, and Colombia.

Companies across the nation worried about tariffs

Walmart isn't the first, and certainly won't be the last, to sound the alarm and warn of price hikes. Automakers were told by the White House to hold the line and not increase prices in response to tariffs. Trump issued a similar threat to Mattel after the toymaker warned that toy prices could rise. “We’ll put a 100% tariff on his toys, and he won’t sell one toy in the United States, and that’s their biggest market,” Trump said, speaking of Mattel CEO Ynon Kreiz.

Adidas CEO Bjørn Gulden said their shoes could cost more in the U.S.

“Although we had already reduced the China exports to the US to a minimum, we are somewhat exposed to those currently very high tariffs,” Gulden said. “What is even worse for us is the general increase in US tariffs from all other countries of origin.”

What can consumers do about tariffs?

1. Stock up on affected items — if you anticipate a price increase for a particular product due to tariffs, consider purchasing it before the price rises. This strategy works especially well for shelf-stable or frozen goods, which may already be in stock and priced pre-tariff.

2. Seek alternatives — look for domestic alternatives for pricey items, and even consider purchasing some items used from online marketplaces.

3. Keep an eye on price increase news —be prepared for potential price increases on imported goods, and be aware that you may have fewer options available. Settle for different products to save.

4. Evaluate your budget — Look for areas to cut back and absorb cost increases elsewhere — like saving on your car insurance or negotiating a cheaper internet plan.

Walmart CFO John David Rainey warned that consumers may start seeing higher prices in just a few weeks.

“I’m concerned that the consumer is going to start seeing higher prices. You’ll begin to see that, likely towards the tail end of [May], and then certainly much more in June,” Rainey told CNBC in an interview.

Whether or not companies “eat the tariffs,” shoppers are already feeling the bite — on grocery shelves and beyond.