Panicked Trump Lashes Walmart for Telling Truth on Tariffs

[SunnyinBangrak]

35 minutes ago, CallumWK said:

 

 

Like I said, no clue about economics. Gross profits is before overheads, like there are operating costs, taxes......and tariffs

If you don't understand who pays tariffs, which clearly you don't, feel free to ask one of the economic literate posters on the forum. 

[MicroB]

Tariffs are paid by the importer, which might be a subsidiary of an exporting company, or, and more commonly, the appointed distributor. Tariffs are paid ad valorem; based on the value of the goods. Essentially, the tariffs is paid on the final selling price. When a distributor imports goods, typically they buy for a sell-in price and sell for a sell out price, with their margin based on a percentage of the difference.

 

Walmart owns no factories in China. Most of their Chinese goods are directly imported based on a Sale-In Price. Payable tariff is calculated based on Sell Out prices. Tariffs will not trigger force majeure. Walmart operates on quite small margins when you look at that recent 10-k.

 

I'm sure the kids will love the Corn Dollies and Sticks for Christmas.

[bendejo]

Waiting for his attempts to re-educate the world in math.  E.g. "5 is less than 2, 10 is less than 3..." and so on.  Possibly a new such lesson every day to steer whatever numbers he decides at that moment.  I have no doubts that he will try such things, the test will be if that 35% of the population that deifies his yammering.  "Prices are up but it is making America great again."  Oh, ok.

 

[NoDisplayName]

5 hours ago, BLMFem said:

Donald Trump lashed out at Walmart over its price hikes, telling the retail giant to “eat the tariffs.

 

Trump just told the fourth-largest employer in the world  (China's PLA is #3), and the largest private employer in the US, second only to the US government to suck it.

 

Will he sign an executive order to require retailers price their goods using Trump math? 

 

3% profit margin - 30% tariff = Winning!

 

Or will Walmarts across the land start putting up truth in tariffing labels on their products?

 

Everyday Low Price:   $13

Trump Tariff Price:     $20

 

 

 

[CallumWK]

1 hour ago, SunnyinBangrak said:

2 hours ago, CallumWK said:

 

 

Like I said, no clue about economics. Gross profits is before overheads, like there are operating costs, taxes......and tariffs

If you don't understand who pays tariffs, which clearly you don't, feel free to ask one of the economic literate posters on the forum. 

Obviously not you then, because tariffs are paid by the end user, also called the customer.
 

[StandardIssue]

5 hours ago, hotsun said:

Lashing out are the leftist medias words. You arent there in person watching trump when hes talking

 

This guy just doesn't have ANY experience in economic policy, foreign policy and most everything that is required for a POTUS to actually do a good job.

 

Walmart won't be able to absorb the tariff..if it does it will go bust.. They WILL have to raise prices so everybody who is a Walmart shopper loses.

Proprietary Information: Retailers like Walmart typically do not publicly disclose profit margins for specific product categories or sourcing regions for competitive reasons.

* Varying Products: Walmart sells a vast array of products from China, spanning numerous categories with different cost structures and pricing strategies. Profit margins would vary significantly across these items.

* Dynamic Pricing and Costs: Costs of goods, shipping, tariffs, and pricing are constantly fluctuating, making a fixed margin difficult to determine.

* Impact of Tariffs: Current and potential future tariffs on Chinese goods significantly impact Walmart's costs and their ability to maintain previous profit margins. Walmart has recently indicated that they will likely need to raise prices on some goods due to the increased cost from tariffs.

However, we can infer some general insights:

* Historically Thin Margins: The retail industry, especially for discount retailers like Walmart, often operates on relatively thin profit margins. Their strategy relies on high sales volume to generate overall profit.

* Pressure on Suppliers: Walmart has a long-standing practice of leveraging its purchasing power to negotiate aggressively with suppliers, including those in China, to keep costs low. This often results in suppliers operating on very slim margins. Some reports indicate that Chinese textile suppliers, for example, had an average profit margin of only around 3.9% in 2024, and Walmart has pushed for further price reductions.

* Impact of Tariffs on Margins: The recent increase in US tariffs on Chinese goods directly impacts Walmart's cost of goods sold. While they attempt to negotiate with suppliers and explore alternative sourcing, these tariffs put downward pressure on their profit margins. Estimates suggest that tariffs could squeeze Walmart's margins.

* Resumption of Sourcing: Despite tariff pressures, Walmart has recently resumed sourcing some products from China, indicating the continued importance of the Chinese supply chain for their inventory and potentially reflecting a need to balance cost and availability. In some cases, retailers are reportedly agreeing to cover additional tariff costs to maintain stock.

* Overall Operating Margin: For context, Walmart's overall operating margin for Walmart U.S. was around 5% in fiscal year 2023. The profit margin on specific product categories from China could be higher or lower than this average.

In conclusion, while a precise figure isn't available, it's likely that Walmart's profit margins on products from China are generally tight, and current tariffs are adding significant pressure, potentially leading to price increases for consumers.

[it is what it is]

 

but, but, but... i thought the exporter paid the tariff? so what's it got to do with walmart? if tariffs paid by exporter no increase in walmart's prices, right?! or maybe trump, and his (dumb) supporters don;t understand how tariffs work.