Walmart will not warn the American -Chinese tariff deal with high prices

Digest opened free editor

Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.

Walmart has warned customers against expecting prices to rise despite this week’s deal between the United States and China to reduce punitive definitions.

The largest fragmentation in the world is especially exposed to the trade war of US President Donald Trump, as China and Mexico were the largest source of imports. The goods obtained from abroad constitute a third of the goods they sell in the United States.

Washington and Beijing agreed this week to a Definition For 90 days, with the United States temporarily reduced fees on Chinese imports to about 40 percent, from 145 percent.

Doug McMelon, CEO of Wall Mart, said that the decline was not large enough to ward off high prices in the future.

He said in prepared statements: “We will do our best to maintain our prices as low as possible, but given the size of the definitions, even at the reduced levels that were announced this week, we are not able to absorb all pressure given the fact of narrow retail margins.”

The first quarter of the year spanned a volatile time for the American economy, as Trump quickly imposed and changed it Definitions On its commercial partners. A 145 percent tax entered China on April 9.

McMillon was among the retailers who were arguing against definitions in the White House, and Trump warned of high prices and empty store shelves.

The warning from McMillon came on Thursday Wal Mart She reported an annual increase of 4.5 percent in similar sales in its American business of the same name in the first quarter, bypassing the 3.7 percent expectations by the Wall Street analysts, according to the visible alpha poll.

The retail seller has maintained his financial guidance for the full year, which includes a 3 to 4 percent projection of growth in net sales. However, the guidance of profits was withheld in the second quarter, referring to the unfinished commercial image. The shares increased by 2.14 percent before the market.

Walmart is the first Big Box seizure of profits since Trump’s ads in April. TARGET and Home Depot will follow next week.

Amazon this month to caution Introductory and commercial policies are risks to profits, but the company has not reported any slowdown in demand or any significant increase in the average selling prices on its platform.

Walmart stated that e-commerce-which includes sales from its own stock and third-party dealers using its platform-was profitable in both the United States and the world for the first time. E -commerce sales increased by 22 percent on an annual basis in a quarter.

The trade war tensions of shoppers have pushed the purchases of some elements in an attempt to overcome the definitions, and perhaps distort the image of the consumer’s request.

Walmart has reported a quarter -annual revenue of $ 165.6 billion, an increase of 2.5 percent year on year and a little less than $ 166 billion, according to Visible Alpha. Net income fell 12.6 percent to $ 4.6 billion, more marginal than consensus.