President Trump claimed Thursday that retail giant Walmart has not felt the effects of tariffs slapped on goods imported from China, as the company’s sales rose for the third quarter.
“Walmart announces great numbers. No impact from Tariffs (which are contributing $Billions to our Treasury). Inflation low (do you hear that Powell?)!” the president tweeted, referencing Federal Reserve Chairman Jerome Powell.
Walmart announces great numbers. No impact from Tariffs (which are contributing $Billions to our Treasury). Inflation low (do you hear that Powell?)!
— Donald J. Trump (@realDonaldTrump) November 14, 2019
[Read more: El Paso Walmart reopens months after massacre]
Walmart reported Thursday its sales online and at U.S. stores that have been operating for at least 12 months grew 3.2% for the three months beginning in late July. The Bentonville, Arkansas-based retailer also said e-commerce sales rose 41%, fueled by its online grocery business.
The company’s operating income fell 5.4% from a year prior, and Walmart reported adjusted earnings per share of $1.16.
Brett Biggs, Walmart’s chief financial officer, told investors the company is “continuing to monitor the ongoing tariff discussions and are hopeful that an overarching long-term agreement can be reached.”
The Trump administration has imposed tariffs on roughly $360 billion in products from China, and the most recent round of levies on a swath of consumer goods, including apparel and shoes, took effect Sept. 1. More duties covering the remainder of items that hadn’t yet been taxed are expected to hit products, including electronics and toys imported from China on Dec. 15.
The tariffs targeting consumer goods that hit Sept. 1 and will take effect next month affect more products sold by Walmart than earlier rounds of duties, indicating it’s too early to tell the effect the tariffs are having on Walmart.
The Chinese government has been pushing the president to call off all tariffs on goods from China as a condition of a phase one trade deal, but Trump told reporters last week he would not agree to a full rollback of the duties.
“They’d like to have a rollback. I haven’t agreed to anything. China would like to get somewhat of a rollback. Not a complete rollback, because they know I won’t do it,” he said.
Biggs in May said the company might have to raise prices due to the levies, and warning “increased tariffs will lead to increased prices.”
