Treasury Secretary Bessent addresses Walmart’s tariff-driven price hike warnings, downplaying inflation risks amid Trump’s trade policies.
WASHINGTON (AP) — Treasury Secretary Scott Bessent has downplayed concerns over inflation linked to President Donald Trump’s tariffs, calling Walmart’s warnings of consumer price hikes a “worst-case scenario” during Sunday news show interviews
. The remarks come amid escalating tensions between the Trump administration and retailers over the economic impact of sweeping tariffs on imports.
Bessent revealed he discussed the issue with Walmart CEO Doug McMillon, emphasizing that the retailer’s obligation to outline “worst-case scenarios” for investors did not reflect inevitable outcomes. “Walmart will absorb some tariffs, and some may trickle down to consumers,” Bessent stated, adding that inflation would “remain in line” with current trends
. His comments contrasted with Walmart’s recent earnings call, where CFO John David Rainey warned that higher prices had already begun appearing on shelves.
President Trump, however, took a firmer stance, urging Walmart and China to “EAT THE TARIFFS” in a Truth Social post. He criticized the retail giant’s record profits, arguing it should shield customers from cost increases
. The conflicting messages highlight the administration’s balancing act between aggressive trade policies and consumer protection.
Meanwhile, Moody’s downgrade of U.S. debt and concerns over Trump’s tax plan—which could add $3.3 trillion to deficits—have intensified scrutiny
. Bessent defended the tariffs as a “negotiating tactic,” claiming strategic uncertainty pressures trading partners. However, economists remain skeptical, noting that Trump’s 2018 tax cuts failed to sustain 3% GDP growth.
The administration is racing to finalize tariff rates with 40 trading partners by July, while early-stage talks with China aim to reset duties from 145% to 30%
. Small businesses and consumers, however, face lingering uncertainty as price volatility looms.
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