The Trump administration’s war with Walmart continued on Sunday, as Treasury SecretaryScott Bessent admitted in an interview that Americans would be paying higher prices at the big-box retailer and other stores across the country.
His remarks come after Walmart’s CEO Doug McMillon told the company’s investors on an earnings call that tariff pressures “accelerated” during the first half of May and that consumers would soon see real price hikes across a wide range of goods, likely by the end of June. McMillon’s position was then confirmed by Walmart’s chief financial officer John David Rainey during an interview with CNBC.
President Donald Trump responded on Truth Social, urging the retailer to “eat” the incoming import costs out of a sense of patriotism.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” wrote the US president. “Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China they should, as is said, “EAT THE TARIFFS,” and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!”
However, on Sunday, the treasury secretary reported that after a call with Walmart executives, Americans would still be expected to see some of those price hikes over the next month.
“I did speak with Doug McMillon, with whom I have a very good relationship,” Bessent told CNN’s Jake Tapper on State of the Union. He added: “So, Walmart will be absorbing some of the tariffs, some may get passed on to consumers.
“Now, understand, that came from an earnings call. On an earnings call, because of SEC requirements, they have to give the most draconian case,” Bessent also claimed. He also said that consumers had a right to be “skittish” but that price hikes would supposedly be offset by dropping inflation rates and other factors, such as efforts to drive down gas prices.
Inflation did cool during March and April, but Fed chair Jerome Powell said that the trend could reverse once the effects of Trump’s tariff agenda are felt on store shelves.
“While tariffs are highly likely to generate at least a temporary rise in inflation, it’s also possible the effects will be more persistent,” Powell said in early April.
Markets have largely recovered from the initial shock of Trump’s tariffs on all US imports and heightened “reciprocal” tariffs targeting dozens of individual countries. At the same time, the administration has worked to secure frameworks for updated trade agreements with US trading partners.
The president and his advisers continue to debate whether any or all of Trump’s tariffs will remain in place throughout his presidency. Still, Trump has repeatedly said that the baseline 10 percent tariff rate on all nations will be permanent.
During the same interview on Sunday, Bessent defended Trump decision to accept a gift of a $400m Boeing 747-8 previously used by the Qatari royal family during his trip to Qatar, Saudi Arabia and the United Arab Emirates. The Treasury secretary claimed that it would be a gift to the federal government, not the president personally. However, it’s set to be given to Trump’s presidential library upon the end of his term.
“Well, I don't know, Jake. The French gave us the Statue of Liberty. The British gave us the Resolute Desk,” Bessent said. “I’m not sure they asked for anything in advance.”
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