U.S. and China Ease Mutual Tariffs
U.S. Lowers Tariffs from 145% to 30% for 90 Days
Walmart CFO: "Still Too High"
As a result of the ongoing tariff war initiated by the United States, Walmart, the largest retailer in the U.S., has announced plans to raise prices.
On May 15 (local time), John David Rainey, Walmart's Chief Financial Officer (CFO), stated in an interview with CNBC that although the U.S. has decided to temporarily lower the additional tariffs on Chinese imports from 145% to 30% for 90 days, "it is still too high." He added, "American consumers will begin to feel the impact of price increases either at the end of this month or starting in June."
CFO Rainey explained, "We are trying to keep prices as low as possible, but given the intensity of the tariffs, we cannot absorb all the pressure factors." He further noted, "Despite the recently announced reduction in tariffs on Chinese goods, there are limits in the context of low retail margins." He also emphasized that "the speed and scale of these price increases are unprecedented."
However, he stated that Walmart plans to implement aggressive strategies to maintain its competitiveness and that the company will absorb part of the price increases caused by higher tariffs.
With Walmart moving to raise prices, there are concerns that other retailers may follow suit, potentially leading to a chain reaction of price hikes. If this occurs, the current price increases could drive inflation across the United States.
The United States and China, after threatening to impose tariffs exceeding 100% on each other's goods, recently held high-level talks in Geneva, Switzerland, and agreed to lower their respective tariff rates by 115 percentage points for 90 days. However, the U.S. is still maintaining a 30% tariff on Chinese imports. In addition, since May 5, the Trump administration has imposed a 10% basic tariff on the majority of countries worldwide.
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