Press Secretary Karoline Leavitt claimed Monday that China will “absorb” the cost of Donald Trump’s tariffs despite the president threatening Walmart over the weekend to absorb the cost of his tariffs and not pass it on to consumers.
Last week, Walmart said it had no alternative but to raise prices for consumers beginning later this month because it could not absorb the cost of the Trump tariffs.
Trump fired back in a post on Truth Social telling the retailer to absorb the tariffs for the sake of his economic agenda.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump posted. “Walmart made BILLIONS OF DOLLARS last year, 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!!!”
At a press conference on Monday, a reporter asked Leavitt about Trump’s post, noting that it undermines the administration’s argument that Americans will not pay the cost of Trump’s tariffs.
“Does [Trump] acknowledge that if companies don’t absorb the full cost, Americans will have to pay?” CBS News’ Weijia Jiang asked.
“The CEO of Walmart made those comments about the tariffs on an early earnings call where CEOs, I believe, are legally obligated to give the most dire warnings and forecasts to their investors and stakeholders,” Leavitt responded.
“The reality is, the president has always maintained that Chinese producers will be absorbing the cost of these tariffs. And that is why China was so quick to hustle to the negotiating table with the United States of America. They need our markets, they need our consumers,” she concluded.
Leavitt’s comments not only contradicts Trump but Treasury Secretary Scott Bessent also. Bessent, on Sunday, claimed Walmart will “eat” some of the tariffs after Trump’s threat.
“I was on the phone with Doug McMillon, the CEO of Walmart, yesterday. And Walmart is, in fact, going to, as you describe it, eat some of the tariffs, just as they did in ‘18, ‘19, and ‘20,” Bessent told Meet the Press host Kristen Welker after she asked if Trump was asking American companies to be less profitable.
However, a source told The Guardian that the conversation between Bessent and McMillon took place before Trump’s threat on Saturday and that the company’s position had not changed.
