Treasury Secretary Scott Bessent played economic jujitsu with CNN by claiming that the higher consumer costs of Trump’s tariffs will be offset by Trump’s tax cuts.
Bessent admitted prices will be higher because of Trumps tariffs, but he pretended they are lowering inflation, which they are not. How can they lower inflation if they raise prices?
Trump’s tariffs are a tax on consumers, but giving tax cuts to millionaires will only benefit them and nobody else.
TAPPER: President Trump went on Truth Social and says Walmart should eat the tariffs, in other words, not pass on the prices to consumers. Doesn’t that inherently serve as an acknowledgment that tariffs are essentially a tax on consumers?
Because initially, President Trump said, well, that’s not true.
Countries pay for the tariffs. But here we have a perfect example, China gets these tariffs, and then Walmart has to raise its prices, and consumers end up paying for them.
BESSENT: Well, Jake, in essence, what you’re saying is, you’re saying taxes are inflationary. So let’s pass the Trump tax cuts, and that’ll be disinflationary, if we continue that line of thinking.
Trump’s tax cuts will not lower prices. The hubris of this man is unconscionable.
BESSENT: I did speak to Doug McMillan, (Walmart CEO) who I have a very good relationship, yesterday, just to understand what he had to say.
