Walmart's raising of prices amid President Donald Trump's trade war could influence other companies to do likewise, according to reports.
On Thursday, Walmart said it must raise prices due to higher costs from tariffs. That, despite two-thirds of the largest U.S. retailer's merchandise sourced in the U.S.
The announcement could mean other companies follow suit, The Wall Street Journal reported.
"If Walmart is doing it, everybody else is probably going to be doing it — if not already, they will be in the future," said Alan Detmeister, an economist at UBS, told the Journal.
Newsmax reached out to the White House for comment on the Journal's story about how Walmart's decision could open the door for other companies to do the same.
Although Trump has rolled back some of his biggest tariffs, those imposed on China are affecting companies that rely heavily on the communist country for goods.
"The magnitude and speed at which these prices are coming to us is somewhat unprecedented in history," Walmart Chief Financial Officer John David Rainey said Thursday.
Former Toys 'R' Us CEO Gerald Storch told CNN that toys, "are almost entirely sourced from overseas, and very heavily from China, which is the headquarters of the toy industry," Newsweek reported.
"There are increases, for sure, coming, how much? We have to see," Storch told CNN.
The Journal reported that although many companies stockpiled goods in preparation for tariffs, Walmart's move suggests that some businesses no longer will put off price increases.
"Retail is incredibly low-margin," said Jason Furman, a Harvard economics professor and an adviser to former Democrat President Barack Obama. "This isn't Walmart taking advantage of this global situation. This is Walmart having no choice but to raise prices."
Furman added that he took note that Walmart tied price increases to Trump's tariffs.
"That tells me that they are more afraid of their own customers and their reactions than they are of Donald Trump and his reaction," he told the Journal.
Retail sales in the U.S. were near-flat in April, government data showed Thursday, with indications that spending is slowing after consumers rushed to beat higher prices from tariffs.
The Associated Press and AFP contributed to this story.
Charlie McCarthy ✉
Charlie McCarthy, a writer/editor at Newsmax, has nearly 40 years of experience covering news, sports, and politics.
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