Tariffs always roll downhill, like work no wants to do that’s sometimes expressed with a four-letter word.
Some readers thought I forgot that bit of business gospel in my May 19 column defending Walmart against President Donald Trump’s admonition that the world’s largest company should “EAT THE TARIFFS.”
Trump’s criticism came after Walmart executives said during their quarterly earnings call they would eventually raise prices because of his new tariffs. My column examining the company’s tight profit margins and explaining why it cannot wholly pay for the tariffs out of its bottom line prompted many comments and notes from readers.
Mike Hickey, who used to lead the Minnesota office of the National Federation of Independent Businesses, wrote that it won’t be the huge corporations like Walmart that take the brunt of the tariffs.
“Based on a few of the conversations I’ve had, I am suspecting that small businesses end up eating a lot more of the tariff costs than large corporations,” Hickey wrote.
Kevin Dulin of Wayzata, who leads a food company that does business with Walmart, said the retailer (which is also the nation’s largest grocer) is putting pressure on suppliers not to raise prices.
“Thus, we will ‘eat’ any price impact coming from tariffs,” Dulin wrote in an email. He said the company sources most of its ingredients in the U.S. but imports garlic and citric acid from China. The firm would need to raise prices 2% to 4% to cover higher costs from tariffs so far.
“Our statement to Walmart is, ‘We are holding our prices,’” Dulin said. “Keeping our biggest customer, and the consumer, happy with stable prices seems prudent.”