On May 18, 2025, Treasury Secretary Scott Bessent acknowledged that tariffs previously implemented are causing higher prices for U.S. consumers. This admission follows years of claims that foreign countries absorbed tariff costs, but recent evidence shows U.S. households bear the financial burden.
Retailers, including Walmart, have announced price increases linked to tariffs, despite absorbing some costs, while cheaper gas somewhat offsets overall price pressure. Treasury Secretary Scott Bessent noted that although retailers such as Walmart might cover some of the increased expenses themselves, the additional costs are expected to be largely passed on to shoppers, with estimates indicating that the average household could see over $2,300 in extra yearly expenses.
This development indicates that tariffs represent a significant tax on American consumers, posing challenges for household budgets and economic policies ahead.
