A content creator is going viral on TikTok after spreading the news that Walmart and Lowe's are in danger of raising their prices.
His video came after the CFO of Walmart and CEO of Lowe's expressed concern that President-elect Donald Trump’s proposed tariffs could make products more expensive.
In an interview on Tuesday with Yahoo Finance, Walmart CFO John David Rainey suggested that tariffs might prompt the retailer to rethink its prices. “If we look back historically when tariffs were enacted... it did result in higher prices for customers,” he said. And following its earnings report, a Walmart executive told Reuters they worried that potentially increased costs would hurt customers at a time “when they are still feeling the remnants of inflation.”
Lowe's is largely saying the same. The company’s CFO said in a recent call with investors that about 40% of the store’s goods are direct imports. As a result, he said he worried that “product costs” would be affected by tariffs. He added, however, that the timing and detailing of such price hikes is uncertain at this point.
In a TikTok video, Jay (@i_am_the_batman13) further explained to viewers how Trump’s tariffs could affect customers. “If Donald Trump is going to levy a 10 to 20% tariff across the board and a 60 to 100% tariff on China, that spells bad news for retailers and their prices,” he warned. As of Thursday, his video had amassed more than 50,400 views.
Throughout his campaign, Trump ran on promises to lower inflation. While many of his economic plans for his second term in office lacked detail, the former president has said that he favors tariffs as a proposed solution.
Earlier this year, Trump floated a proposal which called for raising surcharges on foreign goods entering the United States. He’s called for a blanket tariff of 10 to 20% on all imports and an additional 60% or more on goods from China. He also said that in order to keep Chinese electric vehicles from undercutting American electric vehicles, he would impose “whatever tariffs are required—100%, 200%, 1000%.”
While the timing for these plans is unclear, it’s fascinating that global companies are already making plans to adjust. But customers will bear the brunt of tariffs. An August study by the Peterson Institute for International Economics found that Trump’s plan could cost middle-income households more than $2,600 a year. And when Trump imposed steep tariffs on imported washing machines in 2018, prices increased.
During Trump’s first presidency, his administration enacted tariffs on thousands of products. The result was that Americans spent nearly $80 billion worth of new taxes, the Tax Foundation found.
In his clip, Jay shared the recent messages from Walmart and Lowe's executives with his followers.
“Forget about a rollback,” he quipped. “Walmart is preparing to roll over its customers by raising its prices.”
Jay reiterated that the retail giants are taking this move to prepare for Trump’s tariff plan, though it’s unclear if the former president will follow through—and to what extent.
Still, Jay said that Walmart and Lowe’s “are sounding alarm bells right now.” He added, too, that both stores are anticipating the impact of potential tariffs since they largely sell imported products.
“The U.S. consumers are the ones that will be left holding the bag,” Jay said. “The countries with whom the tariffs will be imposed are not going to be paying these tariffs.”
In the comments of Jay’s video, viewers across the political spectrum offered their thoughts on tariffs and their effect on prices.
Some said that they didn’t have a problem with Trump’s plan as it would force consumers to “buy American.”
“Only foreign products will be affected,” one user said. “I know liberals don’t like buying American, but get used to it.”
“Don’t buy foreign dummy,” another added.
“Foreign prices on foreign goods,” a third viewer wrote. “We wanna buy American goods.”
Of course, not everyone was thrilled with the idea of more tariffs. Those who weren’t similarly expressed concern about price hikes.
“The average person is going to pay $4-6k more a year under Trump’s plan,” one user said.
“Time to get that 65-inch Sony or Hisense TV before the tariffs hit,” a second viewer added.
“This is going to put a lot of small businesses out of business,” another lamented. “They won’t be able to afford it, but looks like this is the American way now.”
@i_am_the_batman13 #walmart #lowes #tariff #fafo ♬ original sound - Jay
The Daily Dot has reached out to Jay via TikTok comment, to Lowe's by email, and to Walmart through its online contact form.
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The post ‘Walmart is preparing to roll over its customers’: Customer issues warning about Lowes, Walmart prices appeared first on The Daily Dot.
