Walmart has long been known as the home of low prices. Recently, they made a statement saying that tariffs in a "trade war" with China would force them to raise their prices. Walmart import 26% of its goods from China, goods that they will have to pay extra for with tariffs.
This is reminiscent of the Haley-Smoot Tariff from the 1930s. In an attempt to pull the US out of the Great Depression, the tariff only pulled the US deeper in. While a tariff on Chinese goods would be put in place in an effort to encourage US made goods in stores, it would only end up effecting the poor.
https://www.cnn.com/2019/05/16/business/walmart-earnings-stock-tariffs-trump-china/index.html
This is sad for people who are used to shopping here for the lowest prices; however, this is something necessary or the company would lose so much money. Hopefully, they find a way to get around raising prices. Lily Philips
ReplyDelete