Treasury Secretary Addresses Walmart Price Hike Warnings
Treasury Secretary Scott Bessent addressed concerns over potential price increases at Walmart due to President Trump's tariffs.
Tariffs and Consumer Costs
Speaking after Trump's warning to Walmart against raising prices, Bessent acknowledged Walmart might pass some costs to consumers. He downplayed inflation worries, defended Trump's trade tactics, and dismissed Moody’s downgrade of U.S. debt.
Walmart's Response
Bessent stated Walmart's CEO, Doug McMillon, indicated that the company would absorb some tariffs, while consumers might bear some costs. This comes after Walmart executives warned of rising prices on shelves since late April.
Trump's Involvement
Trump cautioned Walmart on social media, stating he would be monitoring their pricing.
Worst-Case Scenario
Bessent attributed Walmart's warnings to compliance with federal regulations, suggesting that they were presenting a "worst-case scenario." He highlighted the drop in gasoline prices as a mitigating factor for consumers.
Deficit Concerns
The Committee for a Responsible Federal Budget estimates Trump's tax plan would add $3.3 trillion to deficits over the next decade.
