Costco warns & # 39; prices will go up & # 39; because of new rates
Retail giant Costco says it will probably have to increase prices due to the ongoing commercial war between the US and China.
USA Today reports that Costco's Chief Financial Officer, Richard Galanti, during an earnings call with investors said the company hopes it does not have to increase prices, but is preparing for it after new tariffs were announced this month between two nations.
"At the end of the day, prices will go up on things," Galanti said. "We hope that the ebbs and flow of relations between our countries will improve in this respect."
He added that the company has sought ways to reduce costs and prevent price increases.
"We've gone to all vendors to see what we can do to cut costs," Galanti says. "In some cases, we've reduced order commitments … And we've taken lower prices on some US goods that have has been influenced by the other Wayco.
According to USA Today, Costco has begun to see the effect of tariff on goods, including furniture, bicycles and luggage.
Warning comes after President Trump 
Donald John TrumpOcasio-Cortez returns to bartender in support of tipped workers: "Does it still!" Trade war has cost the stock market trillion: Deutsche Bank analysis Dollar stores warn that they must raise prices above tariffs MORE earlier this month announced that tariffs of $ 200 billion off goods from China will rise from 10 percent to 25 percent, also warned about tariffs of an additional $ 325 billion of Chinese goods "short."
" In China, 10 months Paid tariffs to the United States of 25% of $ 50 billion of high technology and 10% of $ 200 billion of other goods, " Trump wrote in his announcement on Twitter ." These payments are partly responsible for our good financial results. The 10% will go up to 25% on Friday. "
The new tariffs have drawn backlash from farmers, who have been financially charged by the tariffs and received financial support from the Trump administration.
Walmart also recently warned it might have to charge prices because of the charges. [19659014] (function (d, s, id) {
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