Karoline Leavitt Claims China Will Pay Cost of Tariffs — Contradicting Trump, Who Said Walmart Would
Weijia Jiang, CBS News senior White House correspondent, pressed Trump Press Secretary Karoline Leavitt on Monday over conflicting statements coming from President Donald Trump and some of his top aides as to whether or not American companies will pay the price of his tariffs. Leavitt’s answer appeared to be at odds with Trump’s recent claim that Walmart will need to “eat” some of the cost of his tariffs.
“President Trump and his top economic aides have repeatedly said that Americans will not pay the cost of tariffs. In fact, last week, Lutnick said people have to drop the quote ‘silly arguments that consumers would pay the cost,’” Jiang began, referencing a recent statement from Commerce Secretary Howard Lutnick.
“But over the weekend, as you know, the president posted that Walmart ‘should eat the tariffs and not charge the value customer anything. I’ll be watching and so will your customers.’ So does he acknowledge that if companies don’t absorb the full cost, Americans will have to pay?” Jiang asked.
“Well, first of all, 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 replied, downplaying the warning from the CEO of Walmart – one of the country’s largest retailers.
“The reality is, 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,” Leavitt concluded.
Walmart CEO Douglas McMillon said last week, “We will do our best to keep our prices as low as possible. But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins.”
Trump replied on Saturday, writing on social media, “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. 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!!!”
Treasury Secretary Scott Bessent, meanwhile, acknowledged on CNN Sunday that U.S. consumers would likely pay more as a result of Trump’s sweeping tariffs.
“Walmart will be absorbing some of the tariffs, some may get passed on to consumers. Overall, I would expect inflation to remain in line. But I don’t blame consumers for being skittish after what happened to them for years under Biden,” Bessent said.
Watch the clip above via Fox News.
