Walmart will “eat some of the tariffs”, as affirmed by Treasury Secretary Scott Bessent after his conversation with CEO Doug McMillon; however, the company still anticipates needing to raise prices due to the overwhelming pressure from tariffs.

Despite the agreement to absorb some costs, Walmart has indicated that price increases for consumers are unavoidable, particularly due to the substantial tariffs imposed on international trade, which they cannot fully absorb.

Trump's insistence that Walmart should bear the full cost of tariffs reflects his ongoing pressure on corporations to prioritize customer affordability, even as the retail giant recalibrates its pricing strategy amidst chaotic market conditions.

Treasury Secretary Scott Bessent downplayed inflation concerns, stating that Walmart's warnings about price hikes are merely a “worst case scenario” and emphasized the importance of reduced gasoline prices for consumers.

Though Trump has urged Walmart to absorb tariff costs, Bessent acknowledges that while some costs may be passed on to consumers, the expectation is that inflation should stay manageable despite ongoing uncertainties in trade negotiations.

The structure of Trump's tariff strategy remains focused on creating negotiation leverage, and any impact from tariffs on retailers like Walmart is acknowledged to be nuanced, affecting profitability while aiming to stabilize inflation.]

Bessent's remarks signal confidence in the administration’s economic leadership despite skepticism around earlier tax cut impacts and the consequences of escalating tariffs.