Officials at Walmart are reporting that their customers may see a rise in the prices of certain items due to the increased tariffs the US is placing on goods produced in China.
Walmart chief financial officer Brett Biggs told reporters Thursday that while they will attempt to keep their prices low, they can not guarantee that they will remain low:
“We’re going to continue to do everything we can to keep prices low. That’s who we are. However, increased tariffs will lead to increased prices, we believe, for our customers.”
While the majority of Walmart’s goods are produced in the US, the company which is one of America’s largest retailers, still import 26% of its merchandise from China, according to UBS analyst Michael Lasser.
It was not mentioned what items will see increases, but according to analyst, the tariffs will mostly affect industrial materials, component parts, luggage, hats and gloves that are imported.
Biggs told reporters that the company is working with their suppliers and merchant teams to try and offset the increased cost in other ways.
The tariffs may also affect other stores such as Macy’s and Target. Sporting good stores, auto parts companies, and furniture sellers will also be effected.
According to a letter, China accounted for about 41% of all apparel, 72% of all footwear, and 84% of all travel goods imported into the United States in 2017.