Why Walmart decided to say it would raise prices — and risk Trump’s fury

 Why Walmart decided to say it would raise prices — and risk Trump’s fury

*Walmart’s announcement on Thursday that it will hike some prices due to tariffs came at a risk — and led to a critical social media post by President Donald Trump.

*The big-box retailer’s thinner margins, price-sensitive customers and desire to influence policymakers’ decisions may have factored into its decision to speak out, according to retail analysts.

*More companies have been speaking out about U.S. tariffs since April 9, according to  helps corporations navigate reputational risk.

Desk Report : Last month, Walmart downplayed how much President Donald Trump’s tariffs would affect its business in front of a large audience of investors. CEO Doug McMillon pointed to other challenging times that the company had weathered — like the aftermath of 9/11 — and the CEO of its international business didn’t even bring up trade during a panel with global corporate leaders.Read more link : https://t.ly/A6474 

The largest U.S. retailer struck a much different tone Thursday. On its earnings call and in CNBC interviews about its quarterly results, the company warned that higher duties on imports would soon mean higher prices for its shoppers.

“We’re pleased with the progress that’s been made by the [Trump] administration on tariffs from the levels that were announced in early April, but they’re still too high,” CFO John David Rainey told CNBC in an interview.

He added that Walmart is “wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb.”

The discounter’s remarks came with a risk considering Trump’s history of publicly attacking other companies or people perceived to oppose his agenda. Sure enough, he lashed out at Walmart in a weekend social media post, telling the company to “EAT THE TARIFFS.”

Walmart’s shift in tone about the impact of tariffs — and the back-and-forth with the White House — is the latest illustration of the delicate dance of business leaders trying to appease customers, shareholders and a notoriously transactional White House as Trump’s ever-changing trade policy roils their businesses. But the discounter’s more outspoken response also highlights an area where corporate leaders have grown more willing to publicly criticize Trump’s policy positions.

“Tariffs are really the only topic that has broken through a really silent stretch of corporate engagement,” said Joanna Piacenza, vice president of thought leadership at Gravity Research, a Washington, D.C.-based firm that helps corporations navigate reputational risk and counts Fortune 500 companies as its clients. “It is an issue that corporations, that CEOs feel comfortable speaking out on because they’re tying it to business issue. That can’t necessarily be said about other polarizing issues that are dominating the zeitgeist right now.”

Walmart responded to Trump with its own statement, echoing its commitment to maintain low prices.

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

Walmart declined to comment beyond its statement. A source close to the company said Walmart’s decision to warn of higher prices was motivated by a sense of obligation to explain to customers and investors why prices would increase.Read more link : https://t.ly/A6474

While Walmart’s prices are closely watched due to its massive reach, it hasn’t been alone: other companies including Microsoft and Subaru have warned of price increases related to tariffs. But on Tuesday, Home Depot broke with that pattern, as its CFO Richard McPhail said the company plans to “generally maintain our current pricing levels across our portfolio.”

Consumers and investors will get a clearer read on how companies will handle pricing in the coming days, as Target  and Lowe’s, among others, will post first-quarter results.

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