The DSR Network The Daily Blast: Trump’s Angry Walmart Tirade Backfires, Wrecking His Own Tariff Scam
May 20, 2025
Lindsay Owens, an economist and executive director of the Groundwork Collaborative, joins the discussion to unpack Trump's recent spat with Walmart over tariffs. She expertly illustrates how Trump's threats to the retail giant reveal the contradictions in his tariff claims. The conversation dives into how Walmart's price hikes impact consumers and smaller businesses alike. Owens highlights the alarming political implications of these tariffs, suggesting they reflect Trump's weakening grip on economic issues. A fascinating dissection of politics and economics!
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Trump Admits Consumers Pay Tariffs
- Trump's furious demand that Walmart "eat" the costs of tariffs reveals that American consumers ultimately pay these tariffs.
- This public admission undermines Trump's narrative that foreign countries bear the tariff costs.
Tariffs Cost US Companies First
- China does not absorb tariffs; instead, American companies bear the costs and decide how much to pass on to consumers.
- Tariffs function like embargoes when prices rise too high, limiting consumer willingness to pay.
Walmart Price Hike Signals Broader Impact
- Walmart's announcement of price increases signals that tariffs drive prices up industry-wide, as Walmart wields significant negotiating power.
- Smaller retailers with less leverage will face even greater pressure to raise prices.