Walmart warning it'll raise prices as Trump's China tariffs kick in


Walmart Inc (WMT.N) said that it may hike prices of products if the Trump administration imposes a tariff on Chinese imports, according to a letter the company wrote to U.S. Trade Representative Robert Lighthizer two weeks ago and seen by Reuters on Thursday.

The White House this week escalated President Donald Trump's trade war, adding tariffs of 10 percent on another $200 billion on imported Chinese goods effective September 24, ahead of the busy holiday shopping season.

In a letter to Robert Lighthizer, the USA trade representative, Walmart predicted that the immediate impact of the measures would be higher prices for consumers and higher taxes for businesses across America. Now would be a very good time for them to back that claim up.

China's new round of tariffs were made public shortly after President Trump made his September 17 decision.

He did not directly reply to questions asking if there will be a fresh round of trade talks between Beijing and Washington, which had appeared to be in the works prior to the latest tit-for-tat tariffs.

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The promise to further lower import tariffs came as China and the United Stated remained locked in a bitter trade dispute that has roiled financial markets and cast uncertainty over global supply chains.

Ma met Trump two years ago and laid out Alibaba's plan to bring small US businesses onto its platform to sell to Chinese consumers.

China retaliated in response to Mr. Trump's tariffs as promised, following through with its own tariffs on $60 billion in US goods from aircraft to liquified natural gas.

Ma, China's richest man, made the remarks in an interview in the state-owned Xinhua news service, saying the pledge made to President Donald Trump is no longer feasible because of the unstable trade situation. "The situation now has completely destroyed our premise, so it can no longer be completed".

Ma said trade tensions between the United States and China could last for decades and would be "a mess" for all parties involved. "There is no way to deliver the promise", he said.