MW After Trump rages, Walmart says it will eat 'some' of the tariff costs

By James Rogers

Citing a conversation with Walmart CEO Doug McMillon, Treasury Secretary Scott Bessent says the retailer will absorb some of the tariffs' impact, as it did during President Trump's first term in office

Walmart Inc., which attracted the ire of President Donald Trump after it said customers should brace for higher, tariff-fueled prices, has said that it will absorb "some" of the tariffs' impact, according to Treasury Secretary Scott Bessent.

When Walmart $(WMT)$ reported first-quarter results last week, the discount retail giant said that U.S. tariffs on imported goods will push retail prices higher. The comments prompted an irate response from Trump on his Truth Social network Saturday morning.

Trump wrote that Walmart should stop trying to blame tariffs for higher pricing. He warned the company not to pass on the costs to consumers, noting that it made "billions of dollars" last year, which he said was "far more than expected."

"Between Walmart and China they should, as is said, 'EAT THE TARIFFS,' and not charge valued customers ANYTHING. I'll be watching, and so will your customers!!!" Trump wrote.

Related: Walmart's CEO says Americans should brace for higher prices

For its most recent fiscal year, which ended Jan. 31, 2025, Walmart's consolidated net income was $19.44 billion, up from $15.51 billion in the prior year but just below the average analyst estimate compiled by FactSet of $19.65 billion. The gross profit rate, or how much the company makes on its sales, improved to 24.1% from 23.7%.

Speaking on NBC's "Meet the Press" Sunday, Bessent said that he had talked to Walmart CEO Doug McMillon on Saturday. Bessent said that Walmart is going to "eat some of the tariffs, just as they did in '18, '19 and '20," referring to tariffs implemented during the first Trump administration.

"I didn't apply any pressure. Doug and I have a very good relationship, so I just wanted to hear it from him, rather than second-, thirdhand, from the press," Bessent added. The Treasury secretary said that Walmart had given a "worst-case scenario" on the company's first-quarter earnings conference call last week.

The call between McMillon and Bessent was previously scheduled, MarketWatch has learned.

"We have always worked to keep our prices as low as possible and we won't stop," Walmart said in a statement provided to MarketWatch. "We will keep prices as low as we can for as long as we can given the reality of small retail margins."

Related: Prices are probably going up at Walmart. Watch for Target and other retailers to detail the tariff impact this week.

Walmart shares fell 1.6% in morning trading Monday, after rising 1.6% last week.

Walmart's pricing stance is being closely followed as retail earnings season kicks into gear. Rival Target Corp. (TGT) reports results this week, as do Home Depot Inc. $(HD)$, Lowe's Cos. $(LOW)$ and off-price chains TJX Companies Inc. $(TJX)$, BJ's Wholesale Club Holdings Inc. $(BJ)$ and Ross Stores Inc. $(ROST)$.

In a separate interview on "Meet the Press," former Vice President Mike Pence described the initial reciprocal tariffs that Trump unveiled last month as "the largest peacetime tax hike on the American people in the history of this country."

-James Rogers

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May 19, 2025 10:05 ET (14:05 GMT)

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