Walmart, other retailers to raise prices over Trump tariffs – National & International News – MON 25Nov2024

Walmart, other retailers to raise prices over Trump tariffs. What’s about to get pricier?

Federal cases against Trump dropped after request by special counsel Smith.

Walmart, other retailers to raise prices over Trump tariffs

President-elect Trump announced today on Truth Social that he would sign an executive order on his first day in office imposing a 25% tariff on products coming into the United States from Mexico and Canada. He also announced an additional 10% on Chinese goods, in addition to other tariffs already imposed on the country. Trump has framed these tariffs as ways to penalize Mexico, Canada, and China for allowing migrants and illicit drugs to cross the US border.

If you’re wondering what China has to do with the US border, some of the precursor chemicals that Mexican cartels use to create fentanyl come from China. The Biden administration had already made some headway in stemming the flow of some of these chemicals to the Western hemisphere.

Trump has also previously proposed blanket tariffs of 20% on imports from all foreign countries. While Trump promotes tariffs as a way to boost American manufacturing and punish foreign countries and producers, the people who will most immediately feel the pain are American consumers.

What’s about to get pricier?

Retailers and manufacturers who rely either on imported finished products or raw materials will have determine whether to find more expensive domestic sources, find lower-tariff sources from other countries, or pass the cost of these tariffs on to consumers. Either way, at least in the short term, the tariffs Trump will sharply drive up the prices of goods, everything from cars to electronics to shoes and other apparel items, as well as some food items. Generic drugs are another category that will likely become more expensive.

Walmart’s Chief financial officer David Rainey said that while 2/3 of the items sold by the chain are grown or manufactured in the US, prices will likely have to go up on other goods. Other companies that have announced price increases on the horizon are Stanley Black & Decker, AutoZone, Columbia sportswear. Many other companies are likely to follow suit.

Theoretically, increasing tariffs could encourage more investment in domestic manufacturing and create more jobs in the US. Some major companies have already begun reorienting their sourcing strategies following the supply chain snarls during the COVID-19 pandemic. However, such massive reorganizations take time. Some companies may find themselves unable to do so quickly enough to keep from going under. This could lead to massive layoffs. Layoffs are especially likely if countries that buy American-made products impose retaliatory tariffs.

Federal cases against Trump dropped after request by special counsel Smith

Federal District Judge Tanya Chutkan, who was overseeing the election-interference case against President-elect Trump, has agreed to drop the charges in the case. This followed a request from special counsel Jack Smith who was prosecuting both the election-interference case and the classified documents case.

Smith asked that both cases be dropped due to a Justice Department precedent barring sitting presidents from being charged with crimes. “That prohibition is categorical and does not turn on the gravity of the crimes charged, the strength of the government’s proof, or the merits of the prosecution, which the government stands fully behind,” Smith wrote.

Chutkan dismissed the charges without prejudice, which means charges could be refiled once Trump leaves office. The classified documents case was already dismissed by Federal District Judge Aileen Cannon.

Earlier this week, Judge Juan Merchan, who presided over the New York hush-money case against Trump, agreed to postpone his sentencing indefinitely. Trump was convicted on over 30 charges of falsifying business records in May. Merchan has given Trump’s attorneys until December 2 to file a motion to set aside the conviction, based on Trump’s reelection. Manhattan District Attorney Alvin Bragg agreed to postponing sentencing, even until Trump leaves office, but said he would fight any motion to dismiss the case altogether.

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