Treasury Secretary Scott Bessent has acknowledged that Walmart, the largest US retailer, may pass on some costs from President Donald Trump’s tariffs to its customers through higher prices. Bessent made this statement during a call with Walmart CEO Doug McMillon, following Trump’s warning to the company not to raise prices.
Bessent stressed that the decline in gasoline prices is what matters for Walmart customers, despite the uncertainty caused by Trump’s trade policies. However, he noted that Walmart will absorb some of the tariffs and may pass on some costs to consumers.
Walmart did not comment on Bessent’s description of his conversation with McMillon. The company had previously stated that higher prices began to appear on its shelves in late April and accelerated this month.
Bessent also pushed back against concerns about inflation, citing Moody’s Ratings’ downgrade of US government debt as a “lagging indicator.” He dismissed the downgrade as a reflection of the financial markets already pricing in the costs of the total federal debt.
The Trump administration is still trying to determine tariffs with 40 major trading partners before a July deadline. The uncertainty has been a major drag on consumers and businesses, making it difficult for them to make spending plans.
Bessent maintained that strategic uncertainty is a negotiating tactic, suggesting that giving too much certainty to other countries would allow them to negotiate from a position of strength.
Source: https://apnews.com/article/trump-tariffs-walmart-price-increases-bessent-855f1aeb6baba764e35fa1316d0e3c53