Amid growing attention on the impact of tariffs on American consumers, Treasury Secretary Scott Bessent pushed back against Walmart CEO Doug McMillon’s warning that new trade measures would lead to price increases across the retail chain. Bessent appeared on CNN’s State of the Union Sunday to address the matter directly, stating that some price increases were expected, but others would be absorbed by Walmart itself.
“I did speak to Doug McMillon, who I have a very good relationship [with],” Bessent said. “And understand that came from an earnings call. On an earnings call, because of SEC requirements, they have to give the most draconian case.” Bessent clarified that not all tariff costs would be passed on to shoppers and that economic indicators are moving in the right direction.
Bessent: "Walmart will be absorbing some of the tariffs. Some may get passed on to consumers." pic.twitter.com/QhpOfIMsim
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Bessent touted recent economic progress, pointing out that inflation has dropped for the first time in four years under President Trump. “Service prices are down, gasoline prices are down,” Bessent added. “I don’t blame consumers for being skittish after what happened to them four years under Biden. We had the worst inflation in 40 years.”
McMillon’s remarks came during Walmart’s earnings call last Thursday, where he warned that even the temporary rollback of tariffs—from 145% to 30% for 90 days—would not prevent price hikes. “We will do our best to keep our prices as low as possible,” he said. “But given the magnitude of the tariffs… we aren’t able to absorb all the pressure given the reality of narrow retail margins.”
Trump took to Truth Social Saturday, offering his own rebuttal. “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” he wrote. “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.”
The President’s remarks reflect a broader sentiment among his base that multinational corporations are too quick to pass costs down to everyday Americans, while profiting enormously. Trump’s stance also aligns with his ongoing pressure campaign on China and his broader America-first economic policy.
The debate highlights a growing divide between policymakers and corporate leaders over who should shoulder the burden of America’s restructured trade policies. With inflation still fresh in the minds of many voters, the administration is betting that strong messaging around corporate accountability and lower gas prices will resonate more than warnings from retail giants.
Whether Walmart—and other major companies—ultimately raise prices or eat the cost may be less important than who voters believe is fighting for their bottom line. For now, the administration is pushing back on corporate alarmism, framing it as exaggerated and detached from the progress many working families are finally starting to feel.
