Economists and ordinary citizens agree that Trump’s tariffs are taxes paid to the US government by US retailers who then pass on these tax costs to US consumers in the form of higher prices. No mechanism exists for foreign countries to pay these tariffs. Nevertheless, President Trump has repeatedly claimed that foreign nations will pay for the tariffs. Just yesterday, Karoline Leavitt, the White House Press Secretary told reporters that Trump “maintains the position that foreign countries absorb these tariffs.” All Americans know this is a lie. The recent exchange between the president and Walmart officials clearly demonstrate that it is a lie.
Last week, Doug McMillon, the chief executive of Walmart, said that the large retail company would be forced to raise the prices later this month on many of the products they sell. He affirmed that Walmart could no longer absorb all the tariffs imposed on foreign imports. They would be forced to pass on these higher costs to their customers. Immediately Trump berated Walmart on social media. On Saturday he posted that Walmart should “EAT THE TARIFFS” and not pass on these higher expenses to their customers in the form of higher prices. His own words reveal his lies. He does not say here that foreign countries should pay the tariffs. He knows they cannot do so.
His command to Walmart is unbelievable at a much deeper level. He has repeatedly railed against socialist governments (and others) for interfering in the “free markets” of capitalism. But this is precisely what he is doing. As the main spokesperson for the federal government, he is trying to tell a private company how to run their business. He is telling them to go against basic economic principles like the law of “supply and demand” and the “bottom line”. As far as I know, Trump is not accusing Walmart of violating any federal law. He just hates the fact that economic realists (like Walmart, Mattel, Target) are putting in plain view the insanity of his tariff policies. There might be moments (like hoarding necessities in the midst of great need) when public officials should urge companies to keep prices low. This is not that moment. Trump just wants to hide the truth about his unwise tariffs.
In unguarded moments, Trump himself has let the truth slip out of his mouth. Just last month, he was pressed by a reporter about possible empty shelves and higher prices in stores. Answering before he thought about his response, he acknowledged that “children might have two dolls instead of 30 dolls,” and that these dolls might “cost a couple of bucks more than they would normally.”
We are reminded in the Good Book that we will be judged by our words and by our actions. Judgment day might be coming this summer in the form of higher prices.
Lindy Scott 