U.S. Treasury Secretary Scott Bessent stated Sunday that Walmart will absorb a portion of recently imposed tariffs, following a conversation with the company’s CEO, Doug McMillon.
Speaking on NBC’s Meet the Press, Bessent said the company had agreed to mitigate some of the impact of trade tariffs, referencing previous years when Walmart took similar steps. “Walmart is, in fact, going to, as you describe it, eat some of the tariffs, just as they did in ‘18, ‘19, and ‘20,” Bessent said.
The statement came after Walmart announced it would begin raising prices later this month due to the cost pressures from new trade tariffs. The retailer said it would strive to minimize the impact on customers but emphasized that the scale of the tariffs made it difficult to avoid some price increases.
During a recent earnings call, McMillon said, “We will do our best to keep our prices as low as possible, but given the magnitude of the tariffs—even at the reduced levels announced this week—we aren’t able to absorb all the pressure given the reality of narrow retail margins.”
Walmart CFO John Rainey also commented that while the company is structured around providing low prices, the scale of current tariff levels is larger than what most retailers can fully absorb. He indicated that consumers are likely to see some price adjustments beginning in late May, with broader impacts expected by June.
Bessent added that discussions with trading partners are ongoing. He noted that the administration is currently focused on 18 of the U.S.’s most significant trade relationships and anticipates the potential development of regional trade agreements.
Tariff adjustments announced earlier in the month include a temporary reduction in rates on certain imports, including a change from 145% to 30% on goods from a key trade partner, intended to allow time for negotiation.
The administration has indicated it will continue issuing updated tariff notifications to countries that do not engage in trade discussions deemed productive. These changes come amid continued debate over the long-term effects of the administration’s tariff strategy on prices, trade relationships, and economic performance.
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