Treasury secretary says Walmart CEO told him company will absorb some tariff costs

Apnews - May 18th, 2025

Treasury Secretary Scott Bessent downplayed inflation risks linked to the Trump administration’s tariffs, citing discussions with Walmart CEO Doug McMillon. Bessent suggested that Walmart's warnings of price hikes were exaggerated as a precautionary measure. Despite Walmart's acknowledgment of rising prices, Bessent emphasized that falling gasoline costs were more relevant to consumers. Meanwhile, Moody's downgrading of U.S. debt was dismissed by Bessent as a lagging indicator, with the markets already accounting for the federal debt costs.

The story underscores ongoing tensions over tariffs as the Trump administration negotiates with major trading partners, including a 90-day negotiation period with China. Bessent defended strategic uncertainty as a negotiation tactic, while critics remain skeptical about the administration's economic growth projections, especially given previous tax cuts that increased the deficit. This uncertainty affects businesses and consumers planning for the future, and the debate over who should absorb tariff costs continues, with Trump urging Walmart to bear the burden instead of passing it on to customers.

Donald Trump Inflation Walmart Tariffs Scott Bessent U.S. Economy Trade Negotiations Gasoline Prices Doug Mc Millon Moody's Ratings

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RATING

6.2

Moderately Fair

Read with skepticism

The story provides a timely overview of key economic issues, focusing on tariffs and inflation under the Trump administration. While it includes authoritative sources such as Treasury Secretary Scott Bessent and President Trump, it lacks a broader range of perspectives, particularly from Walmart and independent analysts. The article is mostly accurate but would benefit from additional context and transparency regarding the claims made. Its readability could be improved with clearer language and structure, but it effectively addresses topics of significant public interest and potential impact.

Accuracy

The story presents several factual claims that are mostly accurate but require verification. For instance, Treasury Secretary Scott Bessent's statements about Walmart absorbing tariffs and the impact on inflation are consistent with public discourse. However, the extent to which tariffs will be absorbed versus passed on to consumers is not definitively established and requires further data. The article accurately reports President Trump's comments urging Walmart to absorb tariff costs, which align with his public statements. However, the claim about Moody's ratings downgrade being a 'lagging indicator' could benefit from further context about market reactions and expert opinions.

Balance

The story primarily presents the perspective of Treasury Secretary Scott Bessent and President Trump, with limited input from Walmart or independent analysts. This focus may skew the narrative towards the administration's viewpoint, potentially neglecting the retailer's and economists' perspectives on tariffs and inflation. While the article includes a statement from Walmart's Chief Financial Officer, it lacks a broader range of voices that could provide a more balanced view of the economic implications.

Clarity

The article is generally clear, with a straightforward presentation of information. However, the inclusion of technical economic terms such as 'lagging indicator' without explanation might confuse some readers. The narrative could benefit from a clearer structure, especially in distinguishing between direct quotes, paraphrased statements, and the reporter's analysis.

Source quality

The article cites Treasury Secretary Scott Bessent and President Trump as primary sources, which are authoritative for government positions. However, the lack of direct quotes or responses from Walmart, aside from a prior statement from the CFO, limits the depth of source quality. Including more independent economic analysts or other retailers would enhance the reliability and depth of the reporting.

Transparency

The article does not provide detailed context or methodology for how conclusions about inflation and tariffs were reached. While it mentions conversations between Bessent and Walmart's CEO, the lack of direct quotes or detailed explanations of these discussions limits transparency. Additionally, there is no disclosure of potential conflicts of interest or biases that could affect the reporting.