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Costco Promises Not To Raise Prices (Much) Amid Trade War with China


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The current American tariff situation has caused some confusion and anxiety for consumers everywhere, but one popular wholesale retail chain is trying to ease concerns.

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©Costco

As the current presidential administration moves forward in implementing increased tariffs, regular folks around the world are trying to evaluate or taking their best guess as to what multiple looming trade wars could yield in terms of economic stability. Particularly as it relates to a trade war with China, the CEO of Costco says not to worry…too much.

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According to Entrepreneur, despite the global economic uncertainty, Costco doesn’t plan to raise its prices significantly nor make any dramatic changes.

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©Costco Wholesale

During Costco’s second-quarter earnings in March, CEO Ron Vachris noted that Costco intends to keep prices low “by leveraging our global buying power, strong supplier relationships, and innovation.”

Vachris acknowledged that predicting the impact of tariffs remains difficult, but the company will remain steadfast in minimizing cost increases.

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©Shutterstock

Vachris also mentioned that “a third of our sales in the U.S. are imported from other countries, and less than half of those are items coming from China, Mexico, and Canada.” Thanks to this, Costco is expected to have a decent earnings outlook DESPITE the tariffs.

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©Shutterstock

The retailer expects consumers to be more mindful and purposeful in their spending as the impact of inflation and tariffs becomes more prominent. As such, Costco is prepared to adjust. We may just have to wait and see what exactly those adjustments look like.

We’ll continue to keep you posted on this story as it develops, so stay tuned right here at DFB for all the latest updates.

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Does Costco’s confidence ease some of your shopping concerns? Share your thoughts in the comments below!

The post Costco Promises Not To Raise Prices (Much) Amid Trade War with China first appeared on the disney food blog.

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