When Walmart (WMT) CFO John David Rainey told CNBC in May that consumers should expect higher prices due to rising operational costs from President Trump’s tariffs, it didn’t take long for the president to weigh in.
Trump fired back, demanding that Walmart simply “eat the tariffs” — something that even economists say is unrealistic for any retailer, even one as large as Walmart.
But while Trump may be frustrated with Walmart’s refusal to absorb higher costs, the retail giant has built its reputation precisely by adapting to every major disruption that’s come its way over the past 70 years.
At one point, analysts questioned whether Walmart would survive as Amazon devoured retail market share with its e-commerce dominance.
But Walmart counterpunched by building a thriving e-commerce platform of its own, one that finally became profitable this year.
Beating Amazon in drones, expanding AI
Walmart has even managed to leapfrog Amazon in the long-delayed race for drone delivery.
While Amazon currently operates drone deliveries in just two U.S. cities — one in Arizona and one in Texas — and recently suspended operations for two months after technical glitches, Walmart is aggressively expanding.
The company announced this month that it has extended drone delivery into five states, making more than 150,000 successful deliveries since 2021, far outpacing Amazon’s efforts.
Walmart has also fully embraced artificial intelligence. Earlier this month, it launched “Sparky,” a generative-AI shopping assistant, which offers product recommendations and answers customer questions directly through its platforms.
This streak of relentless innovation earned Walmart CEO Doug McMillon a spot on Barron’s list of top CEOs, which praised his leadership in transforming Walmart from a brick-and-mortar retailer into a powerhouse across e-commerce, advertising, and fintech.
Now eyeing crypto? GENIUS Act opens new doors
Walmart may now be setting its sights on its next frontier: cryptocurrency.
According to The Wall Street Journal, both Walmart and Amazon are exploring plans to launch their own stablecoins following Congress’s passage of the GENIUS Act, the first legislation in U.S. history to provide clear rules for stablecoin issuance.
Stablecoins, pegged to the dollar, could allow major retailers to bypass traditional payment rails, cutting out banks and credit card networks that extract billions of dollars in fees every year.
Such a move would represent a seismic shift for the entire payments ecosystem, particularly for incumbents like Visa and Mastercard.
“If retailers like Walmart and Amazon go full-scale into stablecoins, it would send shivers through the nation’s banks and card-network giants,” the Journal reported.
Trump’s tariffs remain political headache
Meanwhile, Walmart’s standoff with President Trump over tariffs continues to draw political attention.
Last week, Democratic Senator Maggie Hassan sent formal letters to several top U.S. retailers — including Walmart — requesting data on how Trump’s steel and aluminum tariffs are driving up food prices.
The U.S. imports roughly 70% of the steel used in canned fruits, vegetables, and other packaged foods, along with about 50% of aluminum, Hassan noted.
“High grocery prices are a top economic concern for Americans, and experts state that tariffs could significantly increase the cost of canned foods,” she wrote.
Despite the political drama, investors remain bullish on Walmart’s ability to adapt. The stock is up 6% year-to-date and has gained 41% over the past 12 months.
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