In the midst of ongoing discussions related to tariffs, President Donald Trump communicated to Walmart that it should ‘absorb the tariffs’ without imposing higher prices on the customers. Over the following weekend, Treasury Secretary Scott Bessent worked to alleviate concerns about the likelihood of inflation as a result of the administration’s tariff policies.
The statement was issued in response to Walmart warning that the imposition of tariffs could result in a hike in prices – a situation that Bessent subsequently described as a ‘maximum adverse outcome’. Bessent also addressed the recent downgrade of U.S. government debt by Moody’s Ratings, minimizing its significance.
On Saturday, following his message to Walmart, the President reiterated his dissatisfaction with Federal Reserve Chairman Jerome Powell. He resurrected his call for Walmart to ‘absorb the tariffs’ after Walmart cautioned that a price hike could be on the horizon.
President Trump demonstrated strong sentiments, advising Walmart to halt attributing increased prices to tariffs. He reminded Walmart of the significant profits they’d made, exceeding all expectations, in the previous year.
“Both Walmart and China, as the saying goes, should ‘SWALLOW THE TARIFFS’, and refrain from burdening loyal customers with any additional costs. I’ll be watching, and so will your clients!”, the President said. This statement aimed to ensure customer-oriented conduct amidst these changes.
Walmart spoke up earlier in the week, stating that the escalating costs from tariffs could soon result in increased prices for consumers. This narrative raised concerns among shoppers who are likely to feel the impact of these adjustments.
In addition to the tariff situation, President Trump expressed his desire for a quicker reduction in rates by the Federal Reserve. He elucidated his exasperation with Chairman Powell late Saturday, continuing his critique of the Fed’s decision-making process.
“The man known famously as ‘Too Late Powell’, may just miss his moment again. But, who knows?”, was President Trump’s somewhat loaded comment. This was a reflection of his long-standing dissatisfaction with Powell’s conduct and timing on rate decisions.
Friday saw President Trump declaring that the United States would be establishing tariff rates applicable to its trading partners in the upcoming weeks. He shared that because of the limitations in negotiating capacity, it is not feasible to negotiate trade deals with all countries simultaneously.
President Trump conveyed his confidence in ensuring a fair approach. However, he was quick to point out logistical barriers saying, “It’s not feasible to engage the volume of individuals who wish to meet with us.” This indicates the practical challenges faced in international trade interactions.
Though the President’s words may seem straightforward, they are part of a complex economic narrative. In the tug-of-war between protecting domestic industries and maintaining price stability, businesses like Walmart, along with everyday customers, could find themselves in a tough spot.
There is a delicate balance between adjusting tariffs to protect domestic industries and avoiding burdening customers with cost escalations. The ongoing discussions and policy adjustments are part of a larger journey towards economic stability and growth.
While businesses like Walmart may be forced to adjust pricing in response to increased costs, the pressure remains on them to balance between compliance with economic policy and maintaining customer loyalty through price stability.
Overall, these economic events are shaping the U.S. policy landscape, with ongoing dialogues centered around tariffs, inflation, and Federal rate decisions. Meanwhile, consumers, businesses, and policymakers watch with keen interest, as these dynamics will likely have far-reaching impacts on both domestic and global economies.
The post Trump to Walmart: ‘Absorb the Tariffs’ appeared first on Real News Now.
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