What does eat the tariffs mean?

[Anonymous]

I don’t get it. Can someone explain to me this idea? I thought these weren’t like a tax or whatever. Isn’t that right? Like other places pay or whatever? Why would Walmart “eat the tariffs”?

[Anonymous]

Here is an example: say Walmart buys a widget from China. The widget previously costs $10, but with tariffs, it now costs $25. Trump wants Walmart to still charge customers $10 for the widget and have Walmart’s bottom line bear the cost of the extra $15.

[Anonymous]

It’s a sharing of increased cost in the same way most consumption, value added, and sales taxes work. The producer bears a portion along with the distributor or importer out of their margins.

[Anonymous]

In other words, Trump wants Walmart to cover up his idiocy by raising taxes on them.

[Anonymous]

Translation: WHY WONT YOU SCREW EITHER THE CONSUMER OR THE SHAREHOLDERS TO ACCOMMODATE MY RIDICULOUS AND POORLY THOUGHT OUT PLAN?!

You see, to Donnie, everything in the world is about Donnie and his personal delusions.

[Anonymous]

And Walmart is a very profitable company so while they likely can’t eat the entire tariff they could indeed help absorb some cost. The downside is that then their profits decrease and their share price will decrease. This does matter because people’s retirement savings are in the market.

What we are seeing is the challenge of making central market decisions in a capitalist system.

While I’m all for Walmart absorbing some cost and any true Dem should be as well - a better path would have been if there was greater certainty of which tariffs would stick to allow investors to reallocate their portfolios accordingly.

[Anonymous]

Trump is not a real businessman and doesn't really understand margins and profits.

[Anonymous]

Anonymous wrote:And Walmart is a very profitable company so while they likely can’t eat the entire tariff they could indeed help absorb some cost. The downside is that then their profits decrease and their share price will decrease. This does matter because people’s retirement savings are in the market.

What we are seeing is the challenge of making central market decisions in a capitalist system.

While I’m all for Walmart absorbing some cost and any true Dem should be as well - a better path would have been if there was greater certainty of which tariffs would stick to allow investors to reallocate their portfolios accordingly.

Walmart's operating income in Q1 2025 was $7.14B on $165.61B in total sales. That's roughly 4.3%. They simply cannot absorb 35% tariffs. Prices are going up and/or product will be pulled off the shelves. Per usual, Trump doesn't know WTF he's talking about.

[Anonymous]

Anonymous wrote:And Walmart is a very profitable company so while they likely can’t eat the entire tariff they could indeed help absorb some cost. The downside is that then their profits decrease and their share price will decrease. This does matter because people’s retirement savings are in the market.

What we are seeing is the challenge of making central market decisions in a capitalist system.

While I’m all for Walmart absorbing some cost and any true Dem should be as well - a better path would have been if there was greater certainty of which tariffs would stick to allow investors to reallocate their portfolios accordingly.

I am a Dem who is not in favor of Walmart adsorbing the costs of a stupid plan that is being used to justify tax breaks for the wealthy.

I would support them reducing profits in order to increase worker pay, benefits or working conditions.

[Anonymous]

It means instead of raising prices, companies should just take the financial hit.

[Anonymous]

Walmart needs to stop buying Chinese crap

[Anonymous]

Anonymous wrote:Walmart needs to stop buying Chinese crap

Why? Did you make this post on Chinese crap?

[Anonymous]

Anonymous wrote:Walmart needs to stop buying Chinese crap

Yeah, I mean yeah, by why come we can’t make none this stuff in Kentucky? Why can’t I marry my cousin to?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Walmart needs to stop buying Chinese crap

Yeah, I mean yeah, by why come we can’t make none this stuff in Kentucky? Why can’t I marry my cousin to?

I mean why come we ain’t got the factories to make what Walmart does in Kentucky. I don’t git it! What is going on! Why is trade so important n stuff? Why come I can’t buy a house on a factory salary no more n git American made everything in Walmart!!!?? Why?

[Anonymous]

Anonymous wrote:Walmart needs to stop buying Chinese crap

Their whole business model, as well as Target and several other US retailers, is predicated on selling stuff made in China. It has been this way for decades, when US businesses, in search of profits, offshored manufacturing to lower costs.