Walmart’s CEO said the price increases were a result of Trump’s tariffs being “too high,” particularly when it came to Chinese goods. “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,” Walmart CEO Douglas McMillon said Thursday in an earnings call.

Trump responded on Saturday, posting to Truth Social that “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!” Trump’s comments echoed Commerce Secretary Howard Lutnick’s comments Sunday on CNN’s “State of the Union,” arguing that “businesses and the countries primarily eat the tariff.” Former Treasury Secretary Larry Summers has called such theories “ludicrous.”

Economists have told CNN that the tariffs will burden lower- and middle-income Americans, who have historically been Walmart’s primary customer base. And consumers often go to the retail giant for non-negotiable purchases, such as groceries. The changes will likely take effect by the end of May, and prices will increase “much more” in June, Walmart’s finance chief, John David Rainey, told CNBC. (CNN)