President Donald Trump and American retail giant Walmart are trading stern words this week over the impact of the administration’s tariffs, after the company’s announcement of impending price hikes drew ire from the Republican leader.

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?

Demanding new tariffs on Europe and Apple, Trump's wild tariff approach makes it tough to do business—and will put a drain on the economy.