Trump Secretary Bombshell Confession Shocks Americans

Some consumer prices are likely to increase because of tariffs, Treasury Secretary Scott Bessent admitted during Sunday interviews, despite earlier White House warnings to retailers not to raise prices.

This shift in messaging comes just a week after the president’s economic team firmly stated that tariffs wouldn’t drive up costs for everyday Americans. Now, officials are adjusting the narrative, acknowledging some price hikes while pointing to offsetting benefits such as declining gas and grocery prices.

Consumer expectations for inflation remain high, and major retailers are signaling they can no longer absorb the impact of elevated tariff rates. The administration finds itself grappling with a problem similar to the previous administration inflation data may be improving, but public sentiment isn’t following suit.

Earlier in the week, Walmart, the largest retailer in the U.S., announced it would begin increasing prices on certain items in the coming weeks. In response, President Trump took to Truth Social on Saturday to demand that Walmart “eat the tariffs,” rather than pass costs onto consumers. This reaction echoed earlier White House frustration in April over reports that Amazon might start showing shoppers how tariffs affect product pricing, which Amazon later denied.

On Sunday, Bessent acknowledged the reality. During an interview on CNN’s “State of the Union,” he said Walmart would absorb some of the tariffs but confirmed that others may indeed be passed on to consumers. Still, he emphasized that the overall economic outlook remains stable.

Bessent said he spoke with Walmart CEO Doug McMillon on Saturday and left the conversation convinced that many of Walmart’s customers were seeing economic benefits, particularly due to a drop in gas prices. He described the falling fuel costs as “a direct tax cut for consumers.” According to AAA, the average national retail price for regular gasoline is about 12% lower than it was a year ago.

Some Republicans are now voicing concerns about the broader impact of tariffs. Senator John Curtis of Utah said on CNN that he worries particularly about the strain on small businesses. Senator Rand Paul of Kentucky told ABC’s “This Week” that price hikes are inevitable under the current tariff regime and pushed back on the narrative that trade deficits should be a central economic concern.

While the administration continues to defend the tariff strategy as part of a broader push for fair trade, it now faces the challenge of convincing both consumers and lawmakers that the long-term benefits will outweigh the short-term costs.