Trump's tariffs may lead to higher Walmart prices, as Treasury Secretary Scott Bessent admits the retailer can't fully absorb new import taxes.
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| Amid Trump’s tariff threats and inflation concerns, Walmart may pass costs to consumers, Treasury Secretary Bessent confirms in major TV interviews. Image: CH |
Washington, USA — May 19, 2025:
Treasury Secretary Scott Bessent acknowledged Sunday that American consumers, particularly Walmart shoppers, could see price increases due to President Donald Trump’s new tariffs. The admission marks a shift in the administration’s messaging, as Trump has publicly insisted that neither U.S. consumers nor companies would bear the burden of the tariffs.
Bessent’s remarks came after a conversation with Walmart CEO Doug McMillon, one day after Trump warned the retail giant against hiking prices. “Walmart will be absorbing some of the tariffs, and some may get passed on to consumers,” Bessent said in a CNN interview. “Overall, I expect inflation to remain stable.”
Still, his comments conflict with Trump’s earlier message on social media: “Walmart should not charge customers more to offset tariffs. I’ll be watching—and so will your customers!!!”
In interviews on CNN’s State of the Union and NBC’s Meet the Press, Bessent defended the administration’s strategy, calling Trump's unpredictability in trade policy a deliberate negotiating tactic. “Strategic uncertainty is a tool,” Bessent said. “If we gave other countries too much clarity, they'd exploit it.”
The Treasury Secretary attempted to deflect inflation fears by pointing to declining gas prices, now averaging $3.18 per gallon according to AAA—though that number has risen slightly in the past week. He also dismissed concerns over the recent credit downgrade by Moody’s Ratings, calling it a “lagging indicator” and arguing that markets have already priced in the federal government’s $36 trillion debt.
However, Bessent’s optimism contrasts with recent comments from Walmart executives. Chief Financial Officer John David Rainey stated that higher prices began appearing in late April and have accelerated this month. “We’re wired to keep prices low, but there’s a limit to what we can bear—or any retailer, for that matter,” Rainey told the Associated Press.
Walmart has not publicly confirmed or denied Bessent’s description of his call with McMillon.
The company’s earnings report last week warned of potential price increases, which Bessent explained was a legal obligation to present a worst-case scenario under federal disclosure rules. He insisted these increases would not be severe.
Meanwhile, the Trump administration is still negotiating new tariff rates with around 40 major trading partners, with a July deadline looming. A 90-day negotiation window with China is also underway, following last week’s agreement to reset tariffs on Chinese goods from 145% down to 30% to enable talks.
Despite assurances, many small business owners remain uneasy. The lack of clarity has made it difficult for them to make long-term investment and inventory decisions.
Economists and independent analysts remain skeptical of Trump’s claims that tariff revenue and economic growth will cover ballooning deficits. The Trump-backed tax plan, currently under scrutiny, could add approximately $3.3 trillion to the national deficit over the next decade, including $600 billion in 2027 alone, according to the Committee for a Responsible Federal Budget.
Bessent maintains that the U.S. economy will outpace debt growth. “I don’t blame consumers for being skittish,” he added, referencing inflation peaks during President Biden’s term in June 2022. “But we’re in a better position now.”
As the debate continues, both economic stability and consumer confidence hang in the balance, with Walmart—America’s largest retailer—caught at the center of a high-stakes policy battle.