Walmart shoppers may see higher prices amid tariffs, treasury chief says
Share this @internewscast.com

President Donald Trump recently warned Walmart to avoid raising any prices from the tariffs and vowed to keep a close watch on what it does.

WASHINGTON — Treasury Secretary Scott Bessent acknowledged Sunday that Walmart, the largest U.S. retailer, may pass along some of the costs from President Donald Trump’s tariffs to its shoppers through higher prices.

Bessent described his call with the company’s CEO a day after Trump warned Walmart to avoid raising prices from the tariffs at all and vowed to keep a close watch on what it does.

As doubts persist about Trump’s economic leadership, Bessent pushed back against inflation concerns, praised the uncertainty caused by Trump as a negotiating tactic for trade talks and dismissed the downgrade Friday of U.S. government debt by Moody’s Ratings.

Yet Walmart does not appear prepared to “eat the tariffs” in full, as Trump has insisted the company and China would do.

Bessent said he spoke Saturday with Walmart CEO Doug McMillon, stressing in two news show interviews that what he thought really mattered for Walmart customers was the decline in gasoline prices. Gas is averaging roughly $3.18 a gallon, down from a year ago but also higher over the past week, according to AAA.

“Walmart will be absorbing some of the tariffs, some may get passed on to consumers,” Bessent said. “Overall, I would expect inflation to remain in line. But I don’t blame consumers for being skittish after what happened to them for years under Biden,” a reference to inflation hitting a four-decade high in June 2022 under then President Joe Biden as the recovery from the pandemic, government spending and the Russian invasion of Ukraine pushed up costs.

Walmart did not comment on Bessent’s description of his conversation with McMillon.

In a social media post on Saturday morning, Trump said Walmart should not charge its customers more money to offset the new tariff costs. “I’ll be watching, and so will your customers!!!” he posted.

Bessent said Walmart on its earnings call on Thursday had been obligated under federal regulations “to give the worst-case scenario so that they’re not sued,” suggesting that the price increases would not be severe in his view.

But Walmart executives said last week that higher prices began to appear on their shelves in late April and 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,” Chief Financial Officer John David Rainey told The Associated Press on Thursday.

Bessent maintained that the ratings downgrade was a “lagging indicator” as the financial markets had already priced in the costs of a total federal debt of roughly $36 trillion. Still, the tax plan being pushed by Trump would add more roughly $3.3 trillion to deficits over the next decade, including a $600 billion increase in 2027 alone, according to the Committee for a Responsible Federal Budget.

The treasury secretary maintained that deficits would not be a problem because the economy would grow faster than the debt accumulation, reducing its increase as a size of the overall economy.

Most independent analyses are skeptical of the administration’s claims that it can achieve 3% average growth as Trump’s 2018 tax cuts failed to do so. Those tax cuts from Trump’s first term did boost economic growth before the pandemic, but they also raised the budget deficit relative to previous estimates by the Congressional Budget Office.

On tariffs, the Trump administration is still trying to determine rates with roughly 40 major trading partners before a July deadline. It’s also in the early stages of a 90-day negotiation with China, after agreed a week ago to reset tariffs on that country from 145% to 30% so that talks can proceed.

Bessent said any worries about tariffs by small business owners most likely reflected the higher rate previously being charged on China. Still, the uncertainty has been a major drag for consumers and businesses trying to make spending plans in the weeks, months and years ahead.

“Strategic uncertainty is a negotiating tactic,” Bessent said. “So if we were to give too much certainty to the other countries, then they would play us in the negotiations.”

Bessent appeared on NBC’s “Meet the Press” and CNN’s “State of the Union.”

Copyright 2025 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.     

Share this @internewscast.com
You May Also Like
At least 2 killed as active shooter ambushes firefighters at brush fire in Coeur d'Alene Idaho: Kootenai County sheriff

Active Shooter Ambushes Firefighters at Coeur d’Alene Brush Fire, Resulting in 2 Deaths: Reports from Kootenai County Sheriff

KOOTENAI COUNTY, Idaho — According to officials, two individuals lost their lives…
Audio released of moment Idaho firefighters ambushed while responding to blaze: 'Emergency situation'

Audio Unveils Tense Moment Idaho Firefighters Attacked During Emergency Response

Audio from the scene in Kootenai County, Idaho, where firefighters responding to…
Denver zoo closes early over the weekend to prevent teenagers from pulling off Tiktok-inspired 'takeover'

Denver Zoo Adjusts Weekend Hours to Deter Teen-Led TikTok ‘Takeover’ Plans

On Saturday, the Denver Zoo decided to close its doors early due…
A Buddhist monk sits on the floor surrounded by police officers.

Buddhist Monk Fatally Shoots Cleric in Temple Dispute Over Toilet Door and Loud Music

A BUDDHIST monk shot a cleric at a temple after becoming furious…
Active shooter, wildfire situation unfolding in Idaho after firefighters ambushed in deadly incident

Authorities Discover Deceased Man with Nearby Firearm Hours After Idaho Firefighters Ambushed

Authorities confirmed late Sunday that a SWAT team found a man deceased…
Top Iranian cleric issues 'fatwa' against Trump, Netanyahu

Prominent Iranian Leader Declares Religious Edict Against Trump and Netanyahu

The leading Shiite cleric in Iran declared a religious decree targeting President…
Jonaiki Martinez-Estrella dead: Gang member who killed Lesandro 'Junior' Guzman-Feliz' dies at Coxsackie Correctional Facility

Jonaiki Martinez-Estrella, Gang Member Convicted in the Killing of Lesandro ‘Junior’ Guzman-Feliz, Found Dead at Coxsackie Correctional Facility

A confirmed gang member, found guilty of inflicting the deadly stab wound…
Smoke rising from a burning building in Tehran, following an Israeli strike.

Leading Iranian Cleric Declares Trump and Netanyahu as ‘Enemies of God,’ Calls for Death with Fatwa

A TOP Iranian cleric has issued a fatwa against President Donald Trump…
Julius Randle staying with Timberwolves on $100 million contract

Julius Randle remains with Timberwolves under $100 million deal

Julius Randle is staying put. The former Knicks player, who was transferred…
Mexican cartel hackers used FBI agent's phone and public cameras to track down and kill informants: report

Report: Hackers from Mexican Cartel Exploit FBI Agent’s Phone and Public Cameras to Track and Eliminate Informants

A hacker associated with a Mexican cartel utilized an FBI agent’s phone…
Leftist media's Iran misreporting: Letters

Letters Criticize Left-Leaning Media’s Inaccurate Reporting on Iran

The Issue: CNN’s report on an assessment doubting the US’s success in…
Democrats accuse GOP of nuking Senate rules to pass Trump megabill

Democrats Claim GOP Undermines Senate Protocols to Push Through Major Trump Legislation

Senate Democrats on Sunday accused Republicans of “going nuclear” to dismantle Senate…