Walmart has revealed the reason for its planned price increase in the United States as soon as this month, citing costs increases as a result of new rates on imports imposed by President Donald Trump.
Walmart's plans follow the White House ads in the last weeks that have resulted in most goods around the world that new import taxes of at least 10%face, with China products that face the highest tariffs of at least 30%.
The executive director of the world's largest retailer, Doug McMillon, while informing investors about the company's performance on Thursday, said he was grateful that the Trump administration had suspended, for now, having suspended plans for more aggressive taxes.
However, this may not prevent the company from increasing prices to cover new costs.
He said: “We will do our best to keep our prices as low as possible, but given the magnitude of tariffs, even at the reduced levels announced this week, we cannot absorb all the pressure.”
According to the company, more than two thirds of the articles that Walmart sells in the US. UU. They are made, assembled or cultivated in the country, while China is the dominant provider in key categories, such as toys and electronics.
The company's executives also declared that the pressure of prices in basic foods such as bananas, avocados, coffee and roses was the result of tariffs in countries that have received less attention, such as Costa Rica, Colombia and Peru.
Talking to the BBC on Thursday, the financial director of the US business points of business, John David Rainey, said buyers could see higher prices in stores as soon as this month and definitely in June.
BBC reports that in Canada, which had also imposed retaliation tariffs on US assets, the head of the leading Loblaw retailer also warned that the Canadians were prepared to see a “large wave of increases related to rates in the coming weeks” as the retin is left without supplies purchased before the new duties were in their place.
The executive director of Loblaw, by bank, in a social networks mail, wrote“While the tariff situation could be improving between the United States and other countries, that is not yet the case here in Canada.”
Meanwhile, Walmart executives said they were focused on protecting food from price increases and in a solid position to quickly adjust what they are buying if buyers begin to pass at higher prices.
According to the retail company, offering guidance to investors as usual about their profit expectations in the next three months would be difficult due to the “dynamic nature” of the situation.
However, executives said they were still pressing to meet their original objectives throughout the year, including plans to increase profits faster than sales, an indication that they hope to transmit higher costs to the consumer without receiving great success.
“We see nothing that changes the way we think about our long -term business,” company executives said to analysts. “We believe we can navigate this.”
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