Like so many other major businesses, big chains like Costco and Walmart are feeling the financial pressures of impending U.S. tariffs.
According to the Financial Times, Costco is pressuring Chinese suppliers to cut prices in the wake of announced 20% tariffs on all Chinese imported goods into the U.S.
The U.S. warehouse retailer requested the price cuts, the outlet reported, citing two suppliers.
And they’re not alone — according to Financial Times, Walmart and other top retailers have made similar requests.
On March 4, President Donald Trump announced increased tariffs on all imported goods from China from 10% to 20% and imposed 25% tariffs on all goods imported from Mexico and Canada, The Street reported.
They are set to go into effect on April 2, through Trump said Friday there would be “flexibility” in the tariff plan, according to CNBC.
Before tariffs were announced, Costco CFO Gary Millerchip noted that customers may see higher prices as a result of tariffs during a December earnings call, according to The Street.
“When it rains, it rains on everybody,” said Millerchip.
In another earnings call earlier this month, Costco’s CEO said the company would consider modifying its supply chain if tariffs led to significant price increases for customers, Reuters reported.
Last week, Walmart reportedly went before China’s Ministry of Commerce to discuss the grocery-chain’s requests to lower costs.
A spokesperson for China’s Ministry of Commerce said “China should not bear the blame for U.S. tariffs,” the Financial Times reported.
More Business News
- Maple Shopping Center in Longmeadow reopens more than 3 years after 4-alarm fire
- Anti-fraud audit of Social Security remains mostly unaddressed
- Massive wellness club with multiple luxury treatments opens in Boston
- Finally, a Chili’s dedicated completely to ‘The Office,’ awesome blossom and all
- Nobel Laureate David Card to present 2025 UMass Amherst Gamble Memorial Lecture