According to Treasury Secretary Scott Bessent, Walmart Inc., which angered President Donald Trump by warning that consumers should expect higher costs due to the White House’s tariff policies, has stated that it will bear “some” of the cost of the tariffs.
Walmart (WMT) stated that U.S. tariffs on imported items will raise retail prices when it released its first-quarter results last week. Trump responded angrily to the remarks on his Truth Social network on Saturday morning.
Trump stated that Walmart should no longer attempt to attribute price increases to tariffs. He cautioned the business against passing on the expenses to customers, pointing out that it made “billions of dollars” last year—”far more than expected.”
“As stated, Walmart and China should ‘EAT THE TARIFFS,’ meaning they should not charge their loyal customers anything. I’ll be watching, and so will your customers!!!” Trump wrote.
Walmart’s consolidated net income for the most recent fiscal year, which concluded on January 31, 2025, was $19.44 billion, up from $15.51 billion the year before but somewhat less than the average analyst expectation of $19.65 billion that FactSet had gathered. The company’s sales profit margin, or gross profit rate, increased from 23.7% to 24.1%.
Bessent stated he spoke with Doug McMillon, the CEO of Walmart, on Saturday during his appearance on NBC’s “Meet the Press” on Sunday. Walmart would “eat some of the tariffs, just as they did in ’18, ’19, and ’20,” Bessent added, alluding to tariffs imposed under the first Trump presidency.
“I didn’t exert any force. Since Doug and I get along so well, I just wanted to hear it directly from him instead of hearing it second- or third-hand via the media,” Bessent continued. Walmart provided a “worst-case scenario” during last week’s first-quarter earnings conference call, according to the Treasury secretary.
MarketWatch has learned that McMillon and Bessent had a prearranged call.
“We have always worked to keep our prices as low as possible and we won’t stop,” Walmart said in a statement that MarketWatch was given. “We will keep prices as low as we can for as long as we can given the reality of small retail margins.”
Following a 1.6% increase last week, Walmart’s stock dropped 0.3% in midday trade on Monday. In 2025, the stock has increased 8.4%, surpassing the 1.2% rise of the S&P 500 index.
As the retail earnings season gets underway, Walmart’s pricing strategy is constantly monitored. This week, rival Target Corp. (TGT), Home Depot Inc. (HD), Lowe’s Cos. (LOW), and discount retailers TJX Companies Inc. (TJX), BJ’s Wholesale Club Holdings Inc. (BJ), and Ross Stores Inc. (ROST) all release their financial results.
According to former Vice President Mike Pence, who made the announcement on “Meet the Press,” Trump’s original retaliatory tariffs last month were “the largest peacetime tax hike on the American people in the history of this country.”
As seen by the recent tentative agreement between the U.S. and China, businesses must contend with a fast evolving tariff environment, according to a note issued Monday by Carol Levenson, Director of Research at Gimme Credit. Planning a business of any kind is not possible in this erratic and unpredictable (the firms are referring to it as “dynamic?) environment,” she stated. “Recall that the last time we saw Walmart decline to give guidance was during the global pandemic.”
