There’s a rumor circulating that goes like this: Donald Trump was once a businessman and overseer of a billion-dollar real estate empire that stretched across the globe.
However, for that rumor to be the least bit true, it would require that Trump know how business works and the basics of economics, which he clearly doesn’t.
For proof of his massive ignorance, you don’t have to look any further than a social media rant the Donald went on regarding reports that Walmart will raise prices to offset the cost of his disastrous tariffs.
“Walmart, the world’s largest retailer, said President Donald Trump’s tariffs are ‘too high’ and it will raise prices on some items as Trump’s global trade war increases the company’s costs,” CNN reported.
“’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 Doug McMillon said Thursday on an earnings call.”
“’The higher tariffs will result in higher prices,’ he said.”
Every economist worth his salt would tell you the same thing: If you raise tariffs, that means a retailer such as Walmart will have to pay more for goods it gets from overseas, and rather than watch their profit margin drop, they’ll raise prices to offset the tariff cost.
But to hear Trump tell it, Walmart is just trying to be greedy. And while that certainly could be true, his imposition of trade tariffs gives companies the perfect excuse to raise their prices.
Here’s what Donald had to say about Walmart: “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected.”
He added, “Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING.”
Trump closed with a threat: “I’ll be watching, and so will your customers!!!”
Eat the tariffs? It makes no sense for a business not to increase its prices when it has to pay more for the goods it purchases. A company that failed to obey that basic law of economics would soon go down the drain, much like many of Trump’s companies did.
About all we can hope for now is that Donnie doesn’t send the US economy down the crapper, too.
