Costco exec warns Trump's proposed tariffs would raise costs

Published On Dec 17, 2024, 10:21 AM

During an earnings call, Costco CFO Gary Millerchip warned that proposed tariffs by President Trump could lead to increased costs for consumers. These tariffs would impose a universal 10-20% tax on imports, with even higher rates on goods from China. While Millerchip noted that Costco has strategies to deal with such costs, he highlighted the challenges of predicting the exact impacts due to the uncertainty surrounding the tariffs.

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The proposed tariffs may lead to higher operational costs for Costco, which could result in increased prices for consumers. This could negatively impact sales volume and consumer spending, particularly among price-sensitive shoppers. The retail environment is already facing inflationary pressures, and these tariffs could exacerbate that situation.

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