The U.S. has lowered the tariff rate on Chinese imports from 145% to 30% for 90 days. Despite this reduction, Walmart plans to raise prices due to the remaining cost pressures from tariffs, as their retail margins are too narrow to absorb all the costs fully.

President Trump believes Walmart should absorb the tariff costs because he claims the company made significant profits and should not pass these costs to consumers. He also argues that his economic policies will lead to more domestic jobs in manufacturing.

Treasury Secretary Scott Bessent views Walmart's warnings as a 'worst case scenario' and believes that Walmart will absorb some of the tariff costs, though consumers might still see price increases due to the company's efforts to maintain low prices.