Treasury Chief Scott Bessent Warns: Tariffs Will Likely Boost Prices

Treasury Secretary Scott Bessent admitted on Sunday that President Donald Trump's tariffs might lead to higher costs for shoppers.

Walmart CEO Doug McMillon announced during a Thursday earnings call that the firm would raise Due to the tariffs, its prices have increased following a decline in first-quarter profits, even though both quarterly sales were robust and operating profit saw an uptick. In a Sunday appearance on "State of the Union," Bessent mentioned that he discussed this with McMillon, who indicated that Walmart might transfer the additional expenses from these tariffs onto U.S. consumers.

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I spoke with Doug McMillon yesterday as we maintain a strong rapport. The conversation was sparked by his comments during an earnings call. It's important to remember that due to SEC regulations, companies must present the harshest scenario possible during such calls," explained Bessent. "As a result, Walmart will absorb certain tariff costs, though some might still be transferred to customers. Additionally, inflation has decreased; this marks the first decline in inflation over four years under President Trump.

The additional point Doug brought up was that for his customers and purchasers, the primary concern is gas prices. This administration has managed to reduce these costs as well as service fees," Bessent added. "Therefore, I anticipate inflation will stay consistent. However, I can understand why consumers might still be wary considering their experiences over the past four years with Biden; we saw the highest inflation rates in four decades.

Inflation eased faster than expected in April, slowing down to the least pace since February 2021, according to the Bureau of Labor Statistics (BLS) reported Tuesday.

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Trump demanded Walmart stated in a Saturday posting on Truth Social that they will not pass on tariff-related costs to customers.

Walmart needs to stop using tariffs as an excuse for increasing their prices across the board. They raked in Billions of Dollars last year, exceeding expectations," he stated. "Both Walmart and China have enough resources; they should absorb these tariffs instead of passing costs onto loyal consumers at all." He added emphatically, "I'll be monitoring this closely, along with their customer base!!!

Nevertheless, Republican Senator Rand Paul from Kentucky said On Sunday during ABC’s "This Week," it was stated that higher expenses due to tariffs are unavoidable.

Well, tariffs act as taxes, and whenever you impose a tax on a business, it gets incorporated as a cost," Paul stated. "As a result, we can expect increased prices.

Bessent stated during "The State of the Union" on Sunday that he thinks the Trump administration will pursue numerous regional agreements, which involves establishing varying tariff levels for distinct areas such as Central America and specific parts of Africa. according To Axios. The Treasury Secretary additionally mentioned that the current administration under Trump is focusing on "these 18 significant trade relations."

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After trade talks in Geneva, Switzerland, the U.S. and China have reached a temporary truce. dropped Their tariffs on each other increased substantially. China had earlier endeavored to make inroads in Vietnam , Malaysia and Europe , following Trump’s announcement of the "Liberation Day" tariffs in early April.

On Friday, Trump claimed that his administration would shortly inform several nations through letters about their respective tariff rates, according to Fortune. reported The president stated that it was unfeasible to engage in negotiations with each individual nation that his administration had imposed tariffs on.

Multiple recent surveys have revealed that Americans are largely dissatisfied with Trump's methodology. economy For example, a Reuters/Ipsos poll Published on April 23 indicated that only 37% of participants agreed with how the president was handling economic matters.

Following Trump’s statement that kids might have less access to cheaper dolls because of his tariffs imposed on China, political commentator Mark Halperin, ex-Democratic strategist Dan Turrentine, and former White House press officer Sean Spicer weighed in. argued On May 5, Democrats believed they weren’t taking full advantage of what they saw as ineffective communication from the president.

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