Walmart's stance on tariffs sparks a rare clash between the White House and corporations.

Scott Bessent, the U.S. Treasury Secretary, stated on Sunday that after a conversation with Doug McMillon, CEO of Walmart, McMillon pledged to bear part of the tariff costs as requested by President Trump. However, this claim was subsequently questioned by many, highlighting a significant divide between companies and the government regarding tariff responsibility.

Government Claims Consensus, Walmart Responds "No Change in Stance"

In a public speech, Bessent said McMillon privately committed to Walmart assuming "corporate responsibility" for certain tariffs, as it did from 2018 to 2020, to avoid passing all costs to consumers. However, insiders revealed this call actually occurred before Trump’s outburst, and Walmart has yet to confirm any change in stance.

A Walmart spokesperson emphasized the company will not comment on private conversations between executives and government officials. Recent public statements indicate the company still favors passing some tariff pressure onto product prices, suggesting it might not fully comply with White House demands.

Trump Criticizes Retail Giant “Profit Earners Should Bear Responsibility”

The turning point occurred last week when Walmart, at a quarterly earnings release, stated that increasing tariff pressures were forcing the company to “raise prices of some goods.” President Trump angrily tweeted, “You made billions last year, you should bear the tariffs, not let the consumers pay.”

Trump expressed dissatisfaction with retail companies’ continued price increases, believing these giants have the capacity to absorb some policy costs. However, the business community does not fully agree with this logic.

Retail Industry Warns Collectively, Rising Prices Affect Livelihoods

John Rainey, Walmart’s CFO, warned last week that despite Walmart’s “Everyday low prices” strategy, the current U.S. tariff levels are beyond what the retail industry can bear, and consumers will start feeling the price increases by the end of May, more visibly in June.

It's not just Walmart; Target, Costco, Best Buy and other retailers have also expressed concern over the tariff policy. The National Retail Federation highlighted as early as March that “as long as tariffs exist, Americans will pay higher prices for essentials.”

Upcoming Earnings Calls Will Serve as Pressure Testing Window

This week, major retailers including Home Depot, Target, Lowe’s, TJX, VF Corp will announce their performance results. Target, in particular, with its high dependency on imports, might be one of the “most directly affected victims of tariff impacts.”

The market is closely monitoring whether these companies will further adjust and state their pricing strategy, profit margins, and consumer behavior in earnings call conferences.

Tariff Policy Tests Retail Ecosystem and Government Credibility

The ongoing debate over tariff responsibility reveals the friction and uncertainty in implementing Trump’s economic policies. While the White House emphasizes tariffs as a negotiation tool, in reality, corporate profit pressures and consumer spending sensitivity are becoming constraints on policy effectiveness.

The tug-of-war between retail giants and the government not only affects corporate financial reports but also impacts the daily lives of households and inflation trends.

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