So, if retailers are resisting raising prices, who will pay the increased costs? Domestically sourced goods can be no more than 55% more expensive (otherwise the imported goods would be cheaper), but we can be sure that locally sourced goods will be priced as close to the full 55% as possible (and as the article points out, some locally manufactured items are probably never going to be less than the overseas cost, even including the tariff tax.)
Now take a look at Walmart's margins https://www.macrotrends.net/stocks/charts/WMT/walmart/profit.... Their gross margin is ~25%, with a net around 2%. Even if Walmart decides to eat the tariff cost out of patriotic duty, anywhere near a ~50% hit to supply chain costs would put them out of business. Heck, even a few percent would require a huge business restructuring, if it were even possible.
So prices are going to be higher - it's a given. In the short-medium term, the tariff tax is simply a large regressive transfer of tax obligation onto consumers.
Now take a look at Walmart's margins https://www.macrotrends.net/stocks/charts/WMT/walmart/profit.... Their gross margin is ~25%, with a net around 2%. Even if Walmart decides to eat the tariff cost out of patriotic duty, anywhere near a ~50% hit to supply chain costs would put them out of business. Heck, even a few percent would require a huge business restructuring, if it were even possible.
So prices are going to be higher - it's a given. In the short-medium term, the tariff tax is simply a large regressive transfer of tax obligation onto consumers.