Walmart CEO Expresses Concern Over Trade War


In an appearance on CNBC Closing Bell on Thursday December 6, Doug McMillon, CEO of Walmart expressed concern over retail prices unless the U.S.-China trade war is resolved.  McMillon noted that Walmart is doing its best not to raise prices but he noted, “If things escalate it could be a different story.”  He added, “We worry about next spring, next summer, next fall and what customers will have to pay if tariffs do escalate.”


McMillon observed that uncertainty in pricing is leading Walmart to identify alternative supply nations.  China is the second-largest source of goods after the U.S. Recently Walmart addressed a letter to U.S. trade Representative Robert Lighthizer expressing their concern over the trade situation and indicating that prices will have to be raised if tariffs escalate.


Despite the December 1st meeting between the Presidents of China and the U.S., concern still dominates the market as denoted by sharp fluctuation in share prices especially involving the retail sector.  The impasse between China and the U.S. was complicated on Thursday December 6th with the arrest in Canada of Meng Wanzhou the CFO and daughter of the founder of technology giant, Huawei on a warrant issued by the U.S. She was granted bail by a Canadian Court on December 11th and will naturally fight extradition to the U.S. The U.S. President has indicated that in the interest of advancing ongoing bilateral talks he might intervene with the Department of Justice.