The former economist Reagan Art Laffer provides an economic analysis of President Donald Trump’s pricing strategy on “Varney & Co.”
Walmart will absorb the cost of certain prices, secretary of the treasury Scott Bessent said Sunday after speaking with the CEO of the company following the president Donald TrumpWarning that the retail giant should “eat prices”.
Bessent detailed his conversation with CEO of Walmart Doug McMillon during an appearance in CNN’s “State of the Union” when he was questioned about Trump’s social media position warning the company not to increase its prices for consumers, as McMillon alluded during a profits call last week.
“I spoke to Doug McMillon, which I have a very good relationship, yesterday just to understand what he had to say,” said Bessent, adding that McMillon’s comments had come during a profit call where the secretary said that companies had to give “the most draconian case” due to the requirements of the dry.
“So Walmart will absorb certain prices,” said Bessent. “Some can be transmitted to consumers.”
The secretary of the Treasury, Scott Bessent, said on Sunday that he spoke with the CEO of Walmart, Doug McMillon, who told him that Walmart would absorb “certain prices”, although some can still be transmitted to the consumer. (Photos Reuters / Nathan Howard / Reuters)
THURSDAY, McMillon said Walmart would do its best to reduce prices, but with the “magnitude” of the prices “, even at the reduced levels announced this week, we are unable to absorb all the pressure given the reality of narrow retail margins.”
Walmart CEO Doug McMillon, said in a profit call last week that the company may have to increase certain prices due to prices. (Ethan Miller / Getty images, file / getty images)
McMillon made the declaration as a retailer reported his first quarter results, which met Wall Street’s expectations.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| Wmt | Walmart inc. | 98.25 | +1.81 |
+ 1.88% |
Trump replied to the declaration of Saturday with an article on its Truth social platform.
“Walmart should stop trying to blame prices as a reason for increasing prices throughout the channel,” wrote Trump. “Walmart won billions of dollars last year, much more than expected. Between Walmart and China, they should, as it is said,” eat prices “, and do not charge for appreciated customers. I will look, and your customers too !!!”
Later on Saturday, Walmart responded to Trump, saying in a press release: “We have always worked to maintain our prices as low as possible, and we will not stop. We will keep the prices as low as long as we can give the reality of small retail margins.”
Bessent also said that his conversation with McMillon covered the prices most concerned about Walmart consumers.
“The other thing Doug told me is, for its consumers, for its buyers, the most important thing is the prices of gasoline,” said Bessent. “And this administration has dropped the prices of gasoline.”
A Walmart store is presented in Oceanside, California, May 15, 2025. (Photos Reuters / Mike Blake / Reuters)
The national prices for regular fuel were on average $ 3.178 on Sunday, against $ 3.592 a year ago, according to the American Automobile Association. Regular fuel reached its highest national average price of $ 5.016 on June 14, 2022, under the Biden administration.
Bessent said that although he would expect inflation “remains online”, he blamed the former president Joe Biden To create the current feeling of uncertainty among American consumers.
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“But I do not blame consumers to be served after what happened to them four years under Biden,” he said. “We had the worst inflation in 40 years.”
Brie Stimson of Fox Business contributed to this report.
