4.8 • 965 Ratings
🗓️ 18 May 2025
⏱️ 4 minutes
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Let's talk about Trump telling Walmart to eat his tariffs....
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0:00.0 | Well, howdy there, Internet people, it's Bell again. |
0:05.0 | So today, we're going to talk about Trump telling Walmart to eat his tariffs. |
0:11.8 | Well, well, well, if it isn't the consequences of my own policies. |
0:17.0 | The tariffs are forcing Walmart to raise prices, which is what economists said would happen. |
0:23.1 | But Trump said wouldn't. |
0:25.2 | Now, he's saying Walmart should just eat the tariffs and not raise prices, saying, quote, |
0:32.5 | Walmart should stop trying to blame tariffs as the reason for raising prices throughout the chain. |
0:38.7 | Walmart made billions of dollars last year, far more than expected. |
0:43.8 | Between Walmart and China, they should, as is said, eat the tariffs, and not charge valued |
0:50.4 | customers anything. I'll be watching, and so will your customers. Eat my tariffs, man. |
0:59.1 | Yes, Walmart makes billions. Walmart makes its money by moving hundreds of millions of items per day |
1:06.4 | at very low net profit margins. But since they're doing such a high volume, they make a fortune. |
1:14.1 | They have a very tiny net profit margin. But that's net profit margin. What about the gross profit |
1:21.3 | margin, which is what they make over the cost of goods? It's normally about 25%, just a little bit under. The now effective |
1:31.0 | tariff rate on products from China is 30%. Do the math. Add 30% to the cost. That would give Walmart |
1:40.0 | a roughly negative 5% gross profit margin. Not raising prices will probably result in Walmart going |
1:48.0 | into the red. Walmart is the largest private employer in the U.S. So since Trump didn't |
1:54.9 | understand the impact of tariffs, despite every economist telling him, his new plan will probably result in layoffs. If they can't |
2:04.9 | raise prices to meet the product cost, they have to cut other costs. I'm not saying this in |
2:11.4 | defense of a multi-billion dollar multinational corporation. I'm saying this to point out that if a giant like Walmart can't handle it |
2:20.6 | without raising prices, there's zero chance for mom and pop places. Tariffs raise prices. That's their |
2:28.1 | whole job. Even the 30% tariff, which Trump and company is trying to paint as moderate, is threatening America's |
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