Walmart (WMT) , the largest retailer in the U.S., faced criticism from some consumers last week after a memo revealed it was planning to reinstate a controversial fee it had initially paused during the Covid-19 pandemic.
In the memo, Walmart said that it will resume charging customers who are part of its Walmart+ Assist program $6.99 if their online order does not meet a $35 minimum, regardless of whether it is being picked up or delivered, according to a report from Reuters on April 30.
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Walmart+ Assist is a program that grants customers 50% off a Walmart+ membership if they are recipients of a qualifying government aid program, such as SNAP, Medicaid, or Federal Public Housing Assistance.
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“We’re reinstating minimum basket fees for customers with EBT cards saved to their Walmart account,” reads the memo, which was sent to customer service employees. “If an EBT customer asks why we charged them a minimum basket fee, explain this is the correct fee for orders under $35.”
An EBT card is a debit-like card that allows consumers to access government benefits for purchasing food.
Walmart customers are angry about the return of a minimum basket fee.
Image source: Bloomberg/Getty Images
Walmart responds to recent backlash
It appears that Walmart began quietly testing out the change last year, as some Walmart shoppers took to Reddit a few months ago to flag frustrations with encountering the fee.
It was later speculated that Walmart made the decision to bring back the fee due to President Donald Trump’s tariffs, which further angered customers. Tariffs are taxes companies pay to import goods from overseas, and the extra cost is often passed down to consumers through price hikes.
“Penalizing people who use EBT due tariffs @Walmart? What if they don’t have the cash for the fee or the EBT to bring the order up to your minimum?” wrote one user on social media platform X.
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“​​@Walmart you cannot do this legally. FS are only for food not to pay a fee that you already pay your employees to do. This is downright fraud,” wrote another user on X.
However, the retail giant recently shot down that speculation. A Walmart spokesperson recently confirmed with Mashable that reinstating the basket fee was not related to Trump’s tariffs. They also said that the fee is a standard practice among other popular retailers, and it doesn’t apply to purchases made inside of its stores.
Walmart previously warned about tariffs
Walmart has recently been sounding the alarm about the impact President Trump’s tariffs could have on its business.
In November, Walmart warned that tariffs could cause it to raise prices in its stores, a move that threatens to drive away customers who are already battling inflation and a higher cost of living.
“We never want to raise prices,” said Walmart Chief Financial Officer John Rainey in an interview with CNBC in November. “Our model is everyday low prices. But there probably will be cases where prices will go up for consumers.”
In February, after President Trump imposed a 10% tariff on all goods imported from China, Walmart made a weaker-than-expected prediction about its performance for the rest of the year.
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In its latest earnings report, Walmart revealed that it expects its net sales to increase only by 3% to 4% and its operating income to rise by 3.5% to 5.5% during 2025, falling short of investor expectations.
During an earnings call on Feb. 20, Rainey said the company’s weaker guidance is based on its acknowledgement that it is operating during “an uncertain time.”
“Our outlook assumes a relatively stable macroeconomic environment, but acknowledges that there are still uncertainties related to consumer behavior and global economic and geopolitical conditions,” said Rainey during the call. “As a result, we’ve taken a similar approach to our initial guidance for you for the year as we have in the past couple of years, balancing known risk with what we can control.”
Trump later heightened his tariffs on China and announced reciprocal tariffs on over 60 countries.
In the midst of Trump’s recent tariff policy changes, Walmart has reportedly been negotiating with its suppliers, pressuring them to cut their prices for goods. This move would shift the burden of tariffs onto those suppliers, which would allow Walmart to keep prices low in its stores.
In addition to negotiating with suppliers, the retailer’s executives even met with Trump last month to discuss his tariff policy.
“We had a productive meeting with President Trump and his team and appreciated the opportunity to share our insights,” said Walmart in a statement to TheStreet last month.Â
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