One of the most audacious announcements came on April 2, 2025 when Donald Trump… He levied a historic new round of tariffs against the countries, and dubbed the day “liberation day.” This announcement has reverberated around the world economy like a seismic shockwave. It has unleashed turmoil in stock markets and alarmed Americans with fears of increasing costs to consumers. The latter nations on Trump’s list of targeted nations have been long time US allies. It further extends to unincorporated outliers such as Heard and McDonald Islands, which are largely uninhabited except for a few penguins.
In his announcement, Trump expressed a strong stance against what he termed as nations that have “looted, pillaged, raped and plundered” the United States. He proclaimed that these tariffs would be key to renegotiating our relationships with other nations on trade. Subsequently, Trump took to his Truth Social network to demand that companies, specifically Walmart, absorb the costs of these tariffs without passing them on to customers.
“We have 150 countries that want to make a deal, but you’re not able to see that many countries.” – Donald Trump
The unintended consequences of these tariffs have been severe. Scott Bessent, a key figure involved in retail responses to the tariffs, indicated that these measures would lead to severe consequences for the economy. At their peak, he said that the tariffs caused “more than any retailer can take.” In the meantime, Bessent cautions consumers to prepare for increased prices beginning in late May. In June, even bigger increases are projecting to come on line!
Bessent’s comments emphasize the new retail environment that the pandemic has created. It was a signal that Walmart would accede to Trump’s demand to “eat some of the tariffs.” He added, though, that the firm was not able to take on the full cost due to its narrow retail margins.
“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.” – Scott Bessent
That kicked off a wild six-week stretch defined by surging inflation and plummeting economic growth. Struggling under the unexpected whirlwind of tariffs, many (if not most) businesses greeted these developments with relief but now worry about the longer-term impacts of consumer spending power.
Bessent testified that he had orchestrated conversations with Walmart CEO Doug McMillon to discuss the tariffs. This happened just days before Trump posted his public call to action. Yet this shows that Walmart’s move on the tariffs was well thought out, not just a last-minute response to Trump’s comments.
Amidst these developments, Bessent asserted that the U.S. government remains focused on its “18 most important trading relationships.” This indicates a positive strategic focus on stabilizing the divesting trade all while looking to untangle the puzzle created by the recent tariff announcements.
The widereffects Furthermore, the effects of Trump’s tariff strategy go deeper than just short-term price increases. The announcement has raised questions about future trade negotiations, as it appears the U.S. is poised to continue discussions with various countries in pursuit of regional deals.
As retailers prepare for the new reality these tariffs create, consumers and businesses across the country will be keeping a close watch. The uncertainty that clouds the future of federal pricing strategies and U.S. trade relations will be the economic story to watch in upcoming months.