Tariffs live updates: China iPhone exports to US plunge to 14-year low amid tariff tensions

Who ultimately pays for tariffs? That question is at the forefront of an emerging battle between the Trump administration and one of America’s biggest retailers in Walmart (WMT).

A bit of catch-up: Last week, Walmart turned heads when the company said as part of its earnings update that the tariffs — even at current reduced levels — would lead to price hikes.

“When you look at the magnitude of some of the cost increases on certain categories of items that are imported, it’s more than what retailers can bear,” Walmart’s CFO told YF’s Brian Sozzi.

A couple days later, Trump lashed out at the retailer. He encouraged them, in some kind of combination with China, to “eat the tariffs.”

Then on Sunday, Treasury Secretary Scott Bessent relayed that he had spoken to Walmart CEO Doug McMillon — and that McMillon had told him that the company “will be absorbing” some of the costs.

Then Monday: White House press secretary Karoline Leavitt claimed that Trump has “always maintained” that “Chinese producers” will absorb tariff costs.

So there you have it: Three days, three different answers from the administration on who will ultimately bear the cost of the price increases that even the administration seems comfortable admitting will occur as an effect of the tariffs. Generally, most economists agree that the tariffs will fan inflation and slow economic growth.