‘Walmart should halt trying to blame the duties for the price increase of this network. Walmart earned billions of dollars last year, much more than expected," wrote the president on his actual Social social network. He added that Walmart and China should absorb customs costs so as not to burden consumers.
“I will be watching you, just like your consumers!” he warned.
fact SocialWalmart responds to Trump's duties. ‘Too high’
On Thursday, Walmart's financial manager announced that the company would gotta rise the prices of its goods due to the duties imposed by president Trump. He stated that despite the reductions in Chinese duties they were inactive ‘too high’.
The company considered to be 1 of the barometers of the American economy has done well so far, and in the first 4th it recorded a score better than expected. However, she warned that she could not foretell what conditions she would face in the second quarter, so she did not print a forecast for that period.
According to media reports, Walmart's management along with rival network leaders, specified as mark and Home Depot, appealed to the White home in April to lower duties, informing that otherwise it could mean empty shelves in stores.
Despite these warnings, the data so far show that companies have not mostly passed on customs costs to consumers, reducing their margins. Inflation data from the last 2 months were better than expected. This was besides indicated by the reading of the price index of the production goods of PPI published on Thursday, i.e. the prices of goods, which fell by 0.5% from March to April, despite the increase expected by specialists by 0.4%.
According to Bloomberg, these data indicate deteriorating forecasts and consumer sentiments, and companies do not rise prices due to the fact that they fear a decline in demand.
