The network of Walmart, said that prices for consumers will rise because of higher tariffs on goods from China. Thus, the company joined other retailers, warned consumers about the rising prices of imported goods.
Thursday Walmart financial officer Brett Biggs said: «the higher tariffs will lead to higher prices for consumers.» He added that the network is Walmart, known for low prices, try to reduce the effect of the fee increase on the company and buyers. About half of Walmart products are products for which prices should not rise because they are produced within the country. But according to UBS analyst Michael Lasser, the company imports about a quarter of the goods from China.
Last week President Donald trump has raised tariffs on imported Chinese goods worth $200 billion with 10% to 25% in an attempt to get Beijing to address the issue of discriminatory trade policies and theft of intellectual property. It is expected that as a result of this decision will increase the prices of thousands of products, including clothing, furniture and electronics. On Monday, China responded in kind, though not in this scale.
Warning Walmart price increase followed a similar statement by Macy’s, made Wednesday. CEO network Jeff Gennett stated that tariffs on imports from China will affect the furniture business, and warned investors that the surcharge will be reflected on clothing and accessories online.
Charlie O’shea, an analyst at Moody’s, said that the possible impact on the network of Walmart and its customers will be limited as fresh produce network of approximately 56% of total revenue. He said: «We believe Walmart has the necessary features and tools to minimize the impact on the company and consumers.»
President of Walmart’s Greg Foran said that the company maintained «leadership in the field of low prices» and «will set prices for each individual item». But this is partly threatened by the growing competition from budget chains, such as Aldi.
In addition, they began to raise prices Walmart suppliers, among them Del Monte Foods, who supply fresh and packaged products, including clementines from China. That is, in connection with increase of tariffs, the prices again will grow.
«It’s not only tariffs. Rising transportation costs, labor. This inflationary environment,» said chief Executive officer of Del Monte Greg Longstreet. «All of this will fall on the shoulders of consumers. Buyers will have to pay more for many necessities».
