Walmart CEO doesn’t want US consumers to pay for tariffs

Channel: Fox Business
Published: 06/04/2019

Description
Walmart CEO Doug McMillon on efforts to mitigate consumer prices in wake of the tit-for-tat tariff battle between the U.S. and China. FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms that impact both Main Street and Wall Street. Headqu...



Transcript
Let me take you back to trade and tariffs, because people are expecting that eventually this gets to the consumer. I mean a lot of people come on the show and they say the same thing. Ultimately, the consumer will pay a tariff or pay the tax. So when you look at some of the products at walmart that are coming from china, if we were to see this remaining 325 billion dollars in imports from trying t ...
also get taxed, we could see that happen in july. Is it you know, should we expect that prices start going up even though you're at rock-bottom already doug? Well, certainly, at walmart we're going to do everything we can to keepthat from happening and, as i mentioned a minute ago, we've got the benefit of mix. Two thirds from the us as a rate, relates to the remaining we've, been working on mitigation strategies to try and offset the risk that we face and we'll continue to do that and try to make sure that if, in fact, we have to go up and given The magnitude of the number that you mentioned eventually that can happen that we do it as little and as late as possible. That'S our objective. We are trying to save people money and that's that's what we work on every day. I know you do and that's been your goal and and it's workedreally well, but to give the consumers and the viewers out there a sense of what these tariffs means on average, let's take a product like a bike. Oftentimes you've got a kid's bike manufactured in china or vietnam. We just had the ceo of padega electric bikes on and he moved his production from china to vietnam. What'S the kind of price increase that one might expect for a bike, a kid's bike? Should we see these tariffs continue? You know, bikes are an interesting category.

We'Ve been for the last few years working to manufacture some bikes here in the us. They they moved out of the us. Many years ago, we've been working to bring them backbut. Most of the bicycles still do come from china and from other countries in asia. So that is a category that's worth talking about. You know. We'Ve got a children's bike that retails for under $ 70. It might be 67 68 dollars. Something like that with the tariffs that you're talking about what we try to do is to make sure that that bike stays under $ 100 if there's any way possible and obviously keep it as low as we can. But as we manage the mix of other categories, we've got all these levers. We can pull to mitigate that that impact of a price increase on something like a bicep and and in terms of the mexicotariffs. Do you think this is long-standing? Do you have any insight in terms of what could happen in the mexico government in terms of helping the u.

s. so that these tariffs toko don't go into effect? No, we don't have any special insight. We we do speak with the mexican government, as well as the trade representatives here in the us to make sure that they understand what we're seeing and you know, we've been operating in mexico for a long time, have a lot of affection for that that market and A lot of associates there and we just want to see these these issues be resolved. Do we understand their complex? We understand their multi-dimensional but inthe case of mexico. In the case of china and other countries, we would like to see these negotiations get wrapped up as soon as they can. Trade is positive. For americans trade is positive for our customers. We can do a lot to help. People in an environment, that's stable and predictable, and and we're looking forward to having that be to be the case at some point.


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