The U. S. Treasury Secretary, Scott Bessent, recently hinted that Walmart, the nation's biggest retailer, might increase prices due to President Trump's tariffs. This came after Trump warned Walmart not to raise prices and promised to keep a close eye on the situation.  The conversation between Bessent and Walmart's CEO, Doug McMillon, happened just a day after Trump's warning.  Bessent tried to downplay inflation worries and praised the uncertainty caused by Trump's policies as a smart move in trade talks.  However, Walmart seems unwilling to absorb all the tariff costs, as Trump has demanded.

Bessent focused on the drop in gasoline prices as a positive for Walmart customers.  He acknowledged that while Walmart will absorb some tariffs, others might be passed on to consumers.  Bessent blamed consumers' worries on past inflation under President Biden.  Walmart, however, has already started seeing price increases on its shelves since late April.

Walmart's Chief Financial Officer, John David Rainey, admitted that while the company tries to keep prices low, there's only so much they can handle.  Bessent dismissed concerns about the U. S. debt downgrade, saying the markets had already factored in the costs.  He also pushed the idea that the economy would grow faster than the debt, reducing its impact.  However, many experts are doubtful about achieving the growth rates Trump's administration is aiming for.

The Trump administration is still figuring out tariff rates with major trading partners and is in early talks with China.  Bessent sees the uncertainty as a negotiating tactic, but it's causing headaches for businesses and consumers trying to plan ahead.  Bessent shared his views on NBC's "Meet the Press" and CNN's "State of the Union. "

WALMART PRICE INCREASES

Walmart's Price Dilemma: Tariffs and the Shopping Cart

Continue reading...