Costco warns prices will rise due to new prices

The distribution giant, Costco, said it is likely to increase its prices because of the ongoing trade war between the United States and China.

According to the USA Today newspaper, Costco 's Chief Financial Officer, Richard Galanti, said at a press conference about the profits that the company was hoping would not need to raise its prices, but that' s not going to work. it was preparing to do so after the announcement of new tariffs between the two countries.

"In the end, prices will go up," said Galanti. "We hope that fluctuations in relations between our countries will improve in this respect."

He added that the company was looking for ways to reduce costs and prevent price increases.

"We went to see all the suppliers to see what we could do to reduce costs," said Galanti, "in some cases we have reduced order commitments … and we have benefited from lower prices some items from the United States have been affected in the other direction.

According to USA Today, Costco began to see the effect of customs duties on goods, including furniture, bicycles and luggage.

The warning comes after President TrumpDonald John Trump, Trump president on Trump's immigration tariffs: "America First is a mistake," warns Bennet against "the trial run" regarding Trump's indictment. Grassley denounces Trump's tariffs in Mexico: "A misappropriation of the authority of the presidential tariff" announced earlier this month that tariffs on $ 200 billion goods from China would increase from 10% to 25%. He also warned against additional tariffs of $ 325 billion on Chinese products "soon".

"For the past 10 months, China has paid the United States tariffs of 25% on $ 50 billion high-tech and 10% on $ 200 billion of other products, Trump wrote in his ad on Twitter. "These payments are partly responsible for our excellent economic results – the 10% will increase to 25% on Friday."

The new tariffs have provoked negative reactions among farmers, weighed down by tariffs and receiving financial assistance from the Trump administration.

Walmart has also recently warned that it may need to raise its prices because of the rates.