The USA and China trade becomes fragile when the word war continues

Who ultimately pays for tariffs? This question is at the top of an emerging struggle between the Trump government and one of the largest retailers in America in Walmart (WMT).

A little catch-up: Last week, Walmart turned the heads when the company said as part of its profit update, that the tariffs would lead to price increases with the current reduced level.

“If you look at the size of some of the cost increases in certain categories of objects that are imported, it is more than what retailers can wear,” CFO from Walmart told Brian Sozzi from YF.

A few days later, Trump hit the retailer. He encouraged her in a combination with China to “eat the tariffs”.

On Sunday, the finance minister Scott Bessent prompted that he spoke to the CEO of Walmart, Doug McMillon – and McMillon told him that the company “absorb” some of the costs.

Then on Monday: The Press spokesman for the White House, Karoline Leavitt, claimed that Trump had always “said” that “Chinese producers” would absorb the tariff costs.

So you have it: three days, three different answers from the administration, who ultimately bears the costs of the price increases, which even seems to admit the administration, will occur as the effect of the tariffs. In general, most economists agree that the tariffs moist in inflation and slow economic growth.