Treasury Secretary Scott Bessent is pushing back against warnings from Walmart CEO Doug McMillon that new tariffs will significantly raise consumer prices. In a direct response to the company’s recent earnings call, Bessent said the gloomy predictions are exaggerated and that Walmart will absorb part of the costs rather than passing them entirely on to shoppers.
Speaking in a Sunday interview, Bessent revealed that he had personally spoken with McMillon and downplayed the alarmist tone of the company’s messaging. “Understand, that came from an earnings call,” Bessent said. “Because of SEC rules, they have to outline the worst-case scenario. The reality is, some of those costs will be absorbed by Walmart. Some may get passed along, but it’s not the economic catastrophe they’re making it out to be.”
The comments come just a day after President Donald Trump lashed out at Walmart on social media, blasting the company for blaming tariffs as a reason to raise prices. “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump wrote. “Between Walmart and China, they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING.”
Despite the administration’s firm stance, Walmart executives have acknowledged that some price increases are already occurring. Chief Financial Officer John Rainey said consumers began seeing higher prices on store shelves in late April and warned they could rise further in the coming weeks. “We’re committed to keeping prices low, but there’s only so much pressure we can absorb,” Rainey stated.
To ease pressure during ongoing trade negotiations, the administration recently introduced a temporary reduction in tariffs on Chinese imports—from 145% to 30%—for a 90-day window. Still, the broader debate over tariffs and their economic impact remains hotly contested.
Bessent argued that other market forces are helping to cushion the blow for everyday Americans. He pointed to declining fuel prices and moderating service costs as signs that inflation is trending downward. “We had the first real drop in inflation in four years under President Trump,” he noted. “The fundamentals are strong.”
He also defended the administration’s approach to global trade, saying that uncertainty is a deliberate strategy in negotiations. “Strategic uncertainty is a tactic. If we give away too much predictability, foreign governments will game the system,” Bessent said.
As the debate continues, the Trump administration is making it clear: corporate America will not be given a free pass to blame tariffs for every price hike—especially not from a retail giant as profitable as Walmart.
Bessent: “Walmart will be absorbing some of the tariffs. Some may get passed on to consumers.” pic.twitter.com/QhpOfIMsim
— The Bulwark (@BulwarkOnline) May 18, 2025