Costco, which is one of the largest retail company in USA has recently said prices of goods and services will go up as a result of trade between US-China. Costco wholesale corporation, which is a giant warehouse retail company is famous for providing low price goods and services under one roof. The company has more than $100 billion of revenue in its account, which is makes it one of the largest retail companies operating in the USA. However, because of ongoing trade war tension between US-China, this warehouse giant company is facing lots of problems.
Recently Chief Financial officer of Costco Richard Galanti said that current geopolitical situation might increase prices of goods and services which are being offered to general customers. The current trade war situation between US-Chia is getting quite dangerous every day because both countries have failed to resolve their issues. Even though both countries officials have met more than two times, they still haven’t signed a trade agreement to end this tariff war.
Recently Trump administration said that the US is going to levy a vast amount of tariffs on Chinese imported goods worth more than $200 billion. Majority of the retail businesses which are operating in USA are dependent on Chinese goods suppliers. The wall street is already showing a negative response of trade war which Trump has started with one of the most significant nations of Asia.
Costco said that this is just the beginning of this trade war and as of now, prices of goods like furniture, luggage, and bikes will significantly increase. Many companies import parts of automobiles from China, but since the tariff rate has been increased to 25% the cost of cars will now get increased. Consumers goods which are purchased by people in bulk quantity from Costco warehouses will see a downfall in its demand because of this trade war dispute.
William has an experience of more than seven years writing for the web. In the recent couple of years, he’s been focusing on the business sector, watching market trends and the growth of economies. At News IMN, we use his services to keep our readers updated about the market that decides their lives.