Costco says that trade war will make "prices go up on things"

Costco Wholesale Corp says prices will increase due to the trade war between China and the US and tariffs on Chinese goods.

Costco CFO, Richard Galanti, said in a post-service conversation with analysts that "the situation is quite fluid," Reuters reported.

"At the end of the day, prices will go up on things. What is interesting is that it is difficult to predict what the effect is," Galanti says.

The company, which offers bulk goods at lower prices, said that was considering buying outside China

Galanti said the company was doing what it could to increase the shipment of goods before any tariffs came into force, Reuters reported. It was not immediately clear how tariffs would affect the prices of imports from China. These include luggage, furniture and bicycles, Galanti said.


"We want to be the last to raise them. And when the prices go down, we will be the first to lower them, he continued. "We're not afraid to spend any of this money to do business again."

The dealer was the last to predict that the charges would lead to higher prices. Earlier this month, Walmart announced to buyers that it would raise prices to offset Trump administration charges on China.

On Thursday, Costco announced its third quarter and first 36 weeks operating profit for the 201[ads1]9 financial year, which closed in May 12, 2019. Net sales for the quarter increased 7.4 percent to $ 33.96 billion, from $ 31.62 billion. dollars last year. Net sales for the first thirty-six weeks increased by 8.3 percent, to $ 102.90 billion, from $ 95.02 billion last year.


The trade war escalated earlier this month after the Trump administration achieved tariffs of $ 200 billion of Chinese goods at 25 percent from 10 percent.

Costco currently operates 773 stores, including 536 in the US and Puerto Rico, 100 in Canada, 39 in Mexico, 28 in the UK, 26 in Japan, 16 in Korea, 13 in Taiwan, 11 in Australia, two in Spain and one each in Iceland and France.

It also operates e-commerce sites in the US, Canada, UK, Mexico, Korea and Taiwan.

Fox Business & # 39; Thomas Barrabi and The Associated Press contributed to this report.

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