The US retail giant Walmart has promised to absorb part of the tariffs imposed by President Donald Trump, following direct pressure from the president. Despite this assurance, the company has indicated that some cost increases will likely be passed on to consumers in the near future.
President Trump had publicly demanded that Walmart “eat the tariffs and not charge valued customers anything,” expressing frustration over the retailer’s announcement of upcoming price hikes. Walmart, citing the impact of tariffs on international trade, had earlier stated it had no choice but to raise prices due to the cost pressures it faced.
Treasury Secretary Scott Bessent confirmed that Walmart’s CEO Doug McMillon assured him personally that the company would absorb some of the tariff costs. This commitment was conveyed during a phone call arranged prior to Trump’s public statements, suggesting the company’s stance had not fundamentally changed.
However, Walmart has highlighted the narrow margins in retail, making it impossible to absorb all tariff-related costs without impacting prices. Walmart’s CFO John Rainey noted that while the company is “wired for everyday low prices,” the tariffs are “more than any retailer can absorb,” warning consumers to expect higher prices by late May and June.
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According to The Guardian, “I was on the phone with Doug McMillon, the CEO of Walmart, yesterday. And Walmart is, in fact, going to, as you describe it, eat some of the tariffs, just as they did in ‘18, ‘19, and ‘20,” said Treasury Secretary Scott Bessent during NBC’s Meet the Press.
Walmart’s recent earnings call clarified the company’s position amid the ongoing trade war. McMillon stated that despite efforts to keep prices low, the magnitude of tariffs means not all costs can be absorbed. Meanwhile, Trump’s trade policies have introduced significant uncertainty in global markets, with tariffs affecting multiple countries, including a recent temporary reduction on Chinese imports.
USA Today reported that Bessent emphasized Walmart will “be absorbing some of the tariffs,” but acknowledged “some may get passed on to consumers,” reflecting the complex balance between tariffs, business profitability, and consumer prices.
The White House has signaled a “total reset” in trade relations, scaling back many of the highest tariffs but maintaining unilateral control over rates with various countries. Bessent added that the US is now focusing on its “18 most important trading relationships,” aiming for regional trade agreements.
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Disclaimer: The information provided in this article is based solely on the sources referenced and does not include any additional opinions or interpretations. We strive to present news accurately and objectively. Please verify details from official channels before making any decisions.
