Costco’s CFO, Gary Millerchip, has cautioned that proposed tariffs by President-elect Donald Trump could lead to price increases at the membership warehouse giant. Speaking on an earnings call, Millerchip highlighted the uncertainty surrounding the timing and scope of the tariffs, making their potential impact difficult to predict.
Trump has proposed sweeping tariffs, including a 10-20% levy on imports and higher duties on goods from China, as part of his trade policy. While the tariffs are intended to address issues like border security and fentanyl production, Millerchip noted that such measures typically raise costs, which is “not something we see as a positive.”
Despite the potential challenges, Costco is prepared to adapt. The company has implemented strategies to mitigate costs in the past, such as advancing inventory purchases to avoid supply chain disruptions and negotiating with vendors to manage expenses.
Costco’s efforts aim to minimize price increases for its customers, even as it braces for the uncertainty of future trade policies. Millerchip expressed confidence in the company’s ability to navigate these challenges, emphasizing that Costco remains committed to serving its members effectively.
Stay tuned as the retail industry anticipates changes under the new administration.
