[Text by Guancha Observer, Zhang Jingjuan] Faced with criticism and warnings from U.S. President Trump, Walmart, the largest retailer in the United States, insisted on shifting costs.

According to The Washington Post, Treasury Secretary Bentsen said in an interview on the 18th that Walmart would absorb part of the tariffs, but he also admitted that some of the increased tariff costs would ultimately be passed on to consumers.

Bentsen said that he had spoken with Walmart CEO Doug McMillon on the 17th and emphasized in two news program interviews that he believed what was truly important for Walmart customers was the drop in gasoline prices. According to data from the American Automobile Association (AAA), the average price of gasoline is about $3.18 per gallon, which has decreased compared to a year ago, but has risen slightly over the past week.

"Walmart will absorb part of the tariffs, and some may be passed on to consumers," Bentsen said.

He claimed, "Overall, I expect inflation to remain stable," with the shadow of high inflation during the Biden administration still lingering, making it no surprise that consumers are particularly sensitive to price fluctuations. In June 2022, U.S. inflation surged to its highest level in over 40 years.

Bentsen stated that Walmart disclosed the worst-case scenario as required by federal regulations during its earnings conference call on the 15th to avoid legal risks. During an interview with NBC, he implied that he did not consider Walmart's price increases to be severe.

However, Walmart executives said last week that there was already a trend of rising prices in late April, accelerating in May.

On the 15th, Walmart CFO John David Rainey told AP reporters that they were doing their best to maintain low prices, but "our, or any retailer's, capacity to withstand price increases is limited."

On May 16, 2025, Pleasanton, USA, Walmart supermarket. Walmart previously stated that due to U.S. tariff policies, it would increase the prices of some goods sold in the U.S. Trump believed that Walmart's substantial profits last year should have allowed it to bear the cost of tariffs itself. IC Photo

As a retail giant and the largest grocer in the United States, Walmart is often seen as a barometer for measuring the health of retailers and U.S. consumers.

Previously (on the 17th), Trump posted on social media, threatening to warn Walmart to stop trying to attribute price increases to tariffs, "absorb tariffs" instead of charging any fees to valuable customers. He said, "I will keep an eye on this, and so will your customers."

In the interview, Bentsen also mentioned the loss of the U.S. AAA rating. He claimed, "Moody's is a 'lagging indicator' because financial markets have already digested approximately $36 trillion in federal debt costs." However, data from the Committee for a Responsible Federal Budget show that Trump's tax cut plan will add approximately $3.3 trillion in deficits over the next decade, with $600 billion added in 2027 alone.

This Treasury Secretary insists that deficits are not a problem because economic growth will outpace the accumulation of debt, thereby reducing its proportion in the overall economy.

Due to the increase in U.S. government debt and interest payments, Moody's decided last week to downgrade the U.S. sovereign credit rating from Aaa to Aa1, while adjusting the U.S. sovereign credit rating outlook from "negative" to "stable." Both Fitch and Standard & Poor's, the other two major international credit rating agencies, downgraded the U.S. sovereign credit rating in 2023 and 2011, respectively, and currently, the U.S. has lost its Aaa highest rating at all three main international credit rating agencies.

On May 18, Bentsen appeared on an NBC program interview. Video screenshot.

The report stated that due to Trump's 2018 tax cuts failing to achieve the target of 3% GDP growth, most independent analyses are skeptical of the U.S. government's claim to achieve this goal. Trump's tax cuts during his first term briefly boosted the economy before the pandemic, but compared to previous estimates by the Congressional Budget Office (CBO), these tax cuts also increased budget deficits.

Regarding tariffs, the Trump administration is still working to determine rates with approximately 40 major trading partners before the deadline in July. Additionally, after China and the U.S. agreed to reduce tariffs, they will continue tariff negotiations within 90 days.

Bentsen said that small businesses' concerns about tariffs mainly stem from the impact of previously imposed high tariffs on China, while policy uncertainty affects consumers and businesses in formulating medium- and short-term plans.

However, he believes that strategic uncertainty is a negotiation strategy, "If we give too much certainty to other countries, they will take advantage of us in negotiations."

This article is an exclusive contribution by the Guancha Observer and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/750605382083568147/

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