U.S. companies are also still cautioning about how tariffs could affect their businesses. On Walmart 's ( WMT -1.35%) earnings call last week, CEO Doug McMillon warned about potential repercussions. President Trump responded on social media that Walmart makes billions of dollars in sales, and that it should "eat the tariffs." But can it?

Walmart, the world's largest retailer, plans to increase product prices due to high tariff costs, sparking criticism from former President Donald Trump. He urges the company to absorb the tariffs instead of passing the cost to consumers.

Walmart will leverage tariffs to gain market share by encouraging competitors to raise prices while strategically keeping prices low where it matters most to customers.