**Retailers Warn of Price Hikes Amid Trump Tariffs**

Retailers are sounding the alarm to President Donald Trump about the inevitable price increases they will have to impose due to his tariffs, which will soon affect a broad range of goods imported to the U.S., primarily from China. This warning comes on the heels of Walmart's announcement that it will pass the tariff costs onto consumers, prompting Trump to famously declare on social media that the retail giant should "EAT THE TARIFFS."

While Walmart initially broke the news about the need to hike prices, Home Depot indicated on Tuesday that it would continue absorbing the tariffs, although industry insiders believe this strategy isn't sustainable given the tight profit margins that most retailers operate under. As price increases become widespread, this could lead to friction between the president and significant business community factions.

President Trump argues that large, profitable companies like Walmart have a duty to support American consumers by absorbing these costs. The new trade policy includes a 10% levy on imports from every country and significantly higher tariffs on specific goods and trading partners like China due to issues such as trade-secret theft and currency manipulation.

Retailers relying heavily on goods from China, such as those selling baby products, will likely see their bottom lines affected. These companies, bound by fiduciary responsibilities to their shareholders, may resort to layoffs if they can't offset the increased costs. Despite Walmart's substantial earnings of over $15 billion last year and its ability to distribute tariff costs across various products, smaller niche retailers face a bleaker outlook.

According to sources, the retailers' message was received without outright dismissal by President Trump. The administration has been attempting to negotiate compromises with trading partners, evidenced by the 2020 China trade pact, which exempted certain imported baby items and food products from tariffs. The shift in trade policy discussions appears to lean towards a more centrist approach led by Treasury Secretary Scott Bessent, contrasting the earlier hard-line tactics.

Retailers are uncertain how much the tariffs' economic impact has been factored into current price models, a concern underscored by recent market volatility and rising bond yields indicating inflationary pressures. While no immediate zero-tariff scenario is expected, leading to inevitable price increases, the political implications are closely watched, particularly as the midterms approach in a year.

President Trump, who was partly elected on criticisms of President Biden's handling of inflation and wage growth, now faces scrutiny over how the tariffs will affect prices and employment rates, potentially influencing voter sentiment in the forthcoming elections.