Will Trump’s Tariffs Raise Prices for Walmart Shoppers? Insights from Treasury Chief

Recently, Treasury Secretary Scott Bessent warned that Walmart, America’s largest retailer, might pass some costs from President Trump’s tariffs onto shoppers. He mentioned that he spoke with Walmart’s CEO, Doug McMillon, to discuss this. Despite Trump’s insistence that Walmart should absorb these costs, it looks like the store may not be able to do so entirely.

While Bessent acknowledged concerns about inflation, he pointed out that lower gas prices—around $3.18 a gallon—could benefit consumers. He noted, “Walmart will absorb some of the tariffs; some may get passed on.” This statement is significant as inflation has negatively affected many consumers in recent years, especially after it hit a 40-year high in June 2022 under President Biden.

However, Walmart’s leadership is already seeing price increases. CFO John David Rainey said, “We’re wired to keep prices low, but there’s a limit to what we can bear.” Higher prices began showing up on their shelves in April and have increased since then, indicating that consumers may feel the impact pretty soon.

Interestingly, in a recent social media post, Trump told Walmart not to raise prices due to tariffs. He stated, “I’ll be watching, and so will your customers!” This kind of public pressure makes Walmart’s decisions even more critical.

Although Bessent downplayed the recent downgrade of U.S. government debt by Moody’s Ratings, he claimed the economy would likely grow faster than the debt accrued. Yet, many experts remain skeptical about this optimism. Reports from the Committee for a Responsible Federal Budget suggest that Trump’s proposed tax plan might increase the national deficit by approximately $3.3 trillion over the next decade.

The uncertainty surrounding tariffs is also causing anxiety among small business owners, who are navigating a complex landscape with major trading partners. There’s talk of resetting tariffs with countries like China, potentially moving rates from 145% down to 30%. This complexity doesn’t just affect businesses; it also impacts consumer spending decisions.

As consumers and businesses prepare for what lies ahead, the conversations around these tariff discussions will continue to shape the economic landscape. It remains to be seen how effective these negotiations will be and what the final impact on prices will look like.

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Donald Trump, Scott Bessent, Joe Biden, John David Rainey, China, International trade, General news, Tariffs and global trade, AP Top News, AR State Wire, Business, Government regulations, U.S. news, Production facilities, Washington news, Doug McMillon, Retail and wholesale, Compensation and benefits, United States government, Politics, U.S. News