Walmart warns of higher prices from tariffs

[kevindavis007]

Walmart warned Thursday that it will have to raise prices on its products after the Trump administration slapped additional tariffs on goods imported from China.


“We’re monitoring the tariff discussions and are hopeful that an agreement can be reached,” the retail giant's chief financial officer, Brett Biggs, told The Associated Press, adding that increased tariffs "will lead to increased prices for our customers.”


The comments came after Walmart posted its best sales performance for the first fiscal quarter in nine years, marking 19 straight quarters of same-store sales gains, the AP noted.


Walmart did not specify the scope of the price hikes, but the warning was echoed by Macy’s CEO, Jeff Gennette, who reportedly told investors that prices for both store label and national brands could rise if another round of tariffs are slapped on China


Read More: https://thehill.com/policy/finance/444029-walmart-warns-of-higher-prices-from-tariffs

[Wingnut]

:yawn:

[kevindavis007]

:yawn:

Of course you like high prices.. I don't!

[skeeter]

Of course you like high prices.. I don't!

Neither do I, but I'll gladly pay them until we stop financing our enemy by shifting our manufacturing needs to friendly countries.

[Wingnut]

Neither do I, but I'll gladly pay them until we stop financing our enemy by shifting our manufacturing needs to friendly countries.

Tariffs will compel American firms to move operations out of China. 

[kevindavis007]

Tariffs will compel American firms to move operations out of China.

To other third world countries.

[Wingnut]

To other third world countries.

That is correct.  Exactly where it is needed.  A win win.

[GtHawk]

Neither do I, but I'll gladly pay them until we stop financing our enemy by shifting our manufacturing needs to friendly countries.

You know the problem with that is that there is a very large segment of America that just doesn't have the financial ability to keep paying up, they have to do with out, make hard choices like food or medicine or cut out entertainment or other non necessities and this all flows down hill ending up with workers losing hours or even jobs. And I tell you right up front very few Americans see this as the kind of situation as WWII, yes this is a trade war but people will not be willing to sacrifice like they did then. If this continues for any length of time and prices continue to rise, the discontent and hostility will start to be vocalized very loudly.

Personally I can't put up with it, where I am they jacked up the gas tax on top of what are already some of the highest gas prices in America( and moron republicans want to jack up the Fed tax) I can't work so getting a second job when I can't work one isn't an option, and I know damn well I'm not alone. I saw them hand out a couple hundred bags of food to seniors last Friday and they had people leave empty handed.

A lot of people denigrate Walmart but low income people go there for a reason, their prices are lower for the same thing the chain groceries sell name brands.  A  name brand loaf of bread at Wally's costs me $2.78 while a major chain out here sell the same loaf for almost $4..........$4 friggin bucks for a loaf of bread and what's really bad is makes the sub $3 loaf look good. I can't even imagine how prices are going to climb at the 'premium' chains but one thing I'm sure of, there are less people willing to pay a higher price, let alone gladly than you think there are. And just how many countries friendly to America do you really think there are? I'm sure that there have already been plans to move more manufacturing to countries like Vietnam, Malaysia and India and more to unfriendly countries like Mexico and Canada.

[ABX]

It seems like the same folks who thought Mexico would pay for the wall are the ones who believe the end consumer won't pay for tariffs.

There is literally no place in the supply chain that forces China to pay these tariffs. ALL expenses in the product cycle is paid by the end consumer. There is no magic formula to make this expense be paid by anyone else.

[ABX]

To other third world countries.

What really happens is if there is any attempt to move production from China, they will open up front companies in places like Singapore and Denmark. They will import the products to those companies and 'sell' them on paper to those companies. Then they will import them to the US from those companies. They will also create companies in Africa that will be the end-assembly of products they make. The 'third world' companies will end up being fronts for China but with less control by us. 

They already do this with a lot of restricted products. Huawei already does this with front companies like HiSilicon, Honor, Neul, Toga, and several others.

The government simply can't micromanage the economy like this. It is way too complex and all it will do is just trample on the consumer.

[Wingnut]

What really happens is if there is any attempt to move production from China, they will open up front companies in places like Singapore and Denmark. They will import the products to those companies and 'sell' them on paper to those companies. Then they will import them to the US from those companies. They will also create companies in Africa that will be the end-assembly of products they make. The 'third world' companies will end up being fronts for China but with less control by us. 

They already do this with a lot of restricted products. Huawei already does this with front companies like HiSilicon, Honor, Neul, Toga, and several others.

The government simply can't micromanage the economy like this. It is way too complex and all it will do is just trample on the consumer.

As always you put ten dollars worth of thought to a 2 dollar problem.  Your doom and gloom predictions are laughable.

[ABX]

As always you put ten dollars worth of thought to a 2 dollar problem.  Your doom and gloom predictions are laughable.

Less laughable than those who have faith in the government to fix any of that.

The difference is China is already doing exactly what I described. However, as we saw from every single major trade war in the past of this scale (Jimmy Carter was the last one at this scale), the government is great at FUBAR anything they try to fix.

[Wingnut]

Less laughable than those who have faith in the government to fix any of that.

The difference is China is already doing exactly what I described. However, as we saw from every single major trade war in the past of this scale (Jimmy Carter was the last one at this scale), the government is great at FUBAR anything they try to fix.

Hold on to that thought.   We are not in the Carter years.