Treasury Secretary Steven Mnuchin testified on Capitol Hill on Wednesday that he has spoken with a top Walmart executive about how the retail giant can best position itself and keep prices low amid the growing trade war with China.

In response to a question from Rep. Ben McAdams, D-Utah, about proposed tariffs and potentially higher prices on items including diapers, infant formula and strollers, Mnuchin said he discussed such concerns with Walmart Chief Financial Officer Brett Biggs.

"I can tell you I am monitoring the situation very carefully. I was on phone with the CFO of Walmart, which obviously is one of the biggest sellers of the items that you've described to specifically understand from Walmart what things they can source from other areas and what items they can't," Mnuchin said at the House Financial Services Committee hearing.

"I would say we haven't made any decisions yet, but we will be especially sensitive to the consumer items," Mnuchin said.

Mnuchin added that he speaks with Biggs on a "regular basis" and has "spoken to all of the major companies that provide consumer goods" about the issue. Asked for comment, Walmart reiterated statements from its first-quarter earnings call made by Biggs and the chief executive of its U.S. arm, Greg Foran.

"In regards to tariffs, we continue to monitor the situation. Our goal is always to be the low price leader and we'll continue to actively manage pricing and margins with our customers and shareholders in mind," Biggs said Thursday. "We're going to continue to do everything we can to keep prices low, that's who we are. However, increased tariffs will lead to increased prices we believe for our customers."

Foran later added on the earnings call: "Merchants are managing costs and retails on an item by item basis. We are working closely with domestic and international suppliers to drive higher efficiency and reduce costs."