Navigating Economic Challenges: Treasury Secretary Bessent Addresses Walmart Tariffs and Trade Talks with China

Treasury Secretary Scott Bessent has been making headlines this week as he navigates complex economic challenges in the Trump administration. On Sunday, May 18, Bessent acknowledged that Walmart may pass along some costs from President Trump's tariffs to consumers, despite Trump's recent warning to the retail giant to "eat the cost" rather than raise prices.

In his CNN interview, Bessent stated, "Walmart will be absorbing some of the tariffs, some may get passed on to consumers," while emphasizing that he expects inflation to remain in line. He pointed to declining gasoline prices, which currently average around $3.18 per gallon, as potentially offsetting some consumer concerns.

The Treasury Secretary has been actively engaged in trade negotiations with China. During an appearance on NBC's Meet the Press, Bessent revealed that after discussions with Chinese officials, both countries concluded that current tariff rates, which have risen as high as 145%, were "unsustainable" and agreed to continue trade talks. This development comes just days after President Trump expressed optimism about reaching a deal with China, stating on his Truth Social platform that "China wants to make a deal. They just don't know how quite to go about it."

Bessent's comments on the trade situation briefly moved markets on Tuesday, causing the S&P 500 to rise from 2% to 2.7% before settling back to 1.7% later in the day. This market volatility demonstrates the significant impact his statements can have on investor sentiment.

On the domestic front, Bessent issued a statement on May 14 praising House Republicans for their progress toward enacting President Trump's economic agenda through reconciliation legislation. "The President's plan for prosperity is in full swing as a unified Republican Party works to drive economic growth while lowering costs from coast to coast," Bessent said, highlighting efforts to make the 2017 Trump tax cuts permanent.

Bessent, who was sworn in as the 79th Treasury Secretary on January 28, 2025, brings 40 years of experience in global investment management to his role. Prior to joining the administration, he served as CEO and CIO of Key Square Capital Management, a global hedge fund he founded in 2015. As Treasury Secretary, he holds a significant position in the presidential line of succession, making him the highest-ranking openly LGBT person ever to serve in the federal government.