Higher Prices Ahead

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Any lingering doubt that American consumers would bear the cost of Trump's tariffs through higher prices has vanished.

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According to Bloomberg, Walmart has been pushing some Chinese suppliers to cut prices by up to 10% with each round of new tariffs. However, few suppliers have agreed so far.

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Walmart, known for its dominance over suppliers, frequently pressures them to accept lower margins in exchange for prime shelf space. However, many suppliers operate on such slim margins that a price cut beyond 2% would push them into losses.

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This poses a challenge for retailers like Target and Best Buy, which have less bargaining power with suppliers. Target has already announced the tariffs will force them to raise prices in the coming days.

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For consumers, that means one thing—higher prices are here to stay.