Follow Us:

Walmart Shoppers May Face Higher Prices Due to Trump's Tariffs

Walmart Shoppers May Face Higher Prices Due to Trump's Tariffs

Treasury Secretary Scott Bessent acknowledged 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 Walmart CEO Doug McMillon a day after Trump warned Walmart not to raise 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.

"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."

Bessent maintained that Walmart on its earnings call 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.

"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 said strategic uncertainty is a negotiating tactic and praised the financial markets for pricing in the costs of a total federal debt of roughly $36 trillion.

"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."

. Walmart, one of the world's largest retailers, is warning its customers that they could be affected by the ongoing trade tensions between the United States and other countries.As the Trump administration continues to impose tariffs on imported goods, including those sold at Walmart stores, consumers are likely to see higher prices on products such as clothing, electronics, and toys. According to a statement from Walmart, "the tariffs will increase costs for us and ultimately for our customers."The retail giant estimates that it could lose up to $3 billion in annual revenue due to the tariffs, which would result in higher prices for consumers. Walmart's chief financial officer, Brett Biggs, said in an interview: "We're going to have to pass some of those costs on to the customer."The company is not alone in its concerns about the impact of tariffs. Many other retailers and manufacturers are also warning that the tariffs will lead to higher prices for consumers."It's a classic example of a tax increase," said Gregory Daco, chief U.S. economist at Oxford Economics. "It's going to be felt by the consumer.".
Share:
Hot Categories

Subscribe & Followers

Recent News