Peter Schiff Slams Trump's 'Eat The Tariffs' Message To Walmart: He Might As Well Ask It To Eat 'Rent, Wages, Insurance…'
Economist Peter Schiff is once again calling out President Donald Trump’s logic on trade and tariffs, arguing that the economic logic behind this stance does not hold up.
What Happened: On Saturday, Schiff posted on X in response to Trump’s warning to Walmart Inc. (NYSE:WMT) not to increase prices due to the tariffs imposed by his administration.
Trump suggested that companies like Walmart should absorb the cost increases rather than pass them on to consumers. Schiff pushed back, saying, “Trump said Walmart should eat the tariffs. He might as well tell Walmart to eat its rent, wages, insurance, utilities, and all of its other costs too.”
Schiff, a long-time critic of protectionist trade policies, argued that higher consumer prices aren't a side effect of tariffs but a necessary feature of how they work. “If the goal of tariffs is to reduce our trade deficit, the only way that will happen is if Walmart and other importers raise their prices,” he said.
He added, “It's higher prices that will cause consumers to buy fewer imports, thus reducing the size of our trade deficits.”
Why It Matters: Several other eminent intellectuals have echoed similar concerns in recent weeks. Economist Justin Wolfers recently called Trump's tariff stance “fundamentally incoherent,” pointing to shifting goalposts and an apparent attempt to have it both ways on taxes and trade policy.
Schiff has been a vocal critic of the tariffs for months, having said recently that the tariffs put “American Last” for investors, while warning of a financial crisis worse than 2008, if they remained.
Last week, Schiff warned that the only way to cut the U.S. trade deficit is via either a significant decline in the value of the dollar or high tariffs, both of which will result in high inflation.
Treasury Secretary Scott Bessent mentioned on Friday, during an interview with NBC's Meet the Press with Kristen Welker, that he had spoken to Walmart’s CEO, Carl McMillon, and said that the retailer will absorb some of the impacts from the tariffs, as it had done in prior inflationary periods.
“Walmart is, in fact, going to, as you describe it, eat some of the tariffs just as they did in '18, '19 and '20,” Bessent said.
Price Action: Walmart’s shares were up 1.96% on Friday, at $98.24, they are currently down 1.07% after hours, following Trump’s post over the weekend.
According to Benzinga’s Edge Stock Rankings, Walmart scores in the 90th percentile on Momentum and 80% percentile on quality. It also has a favorable price trend in the short, medium, and long terms. You can take a look at more deeper insights here.
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Posted-In: Carl Mcmillon Donald Trump Peter Schiff Scott Bessent tariffs Trade WarsGovernment Markets
