Donald Trump proposed tariff policy continues to reshape international trade dynamics, primarily affecting China, Mexico, and Canada. Now, a senior executive at Costco has raised alarms about the potential consequences of the president-elect’s proposed tariffs, warning that they will lead to increased prices for goods across the board.

Trump has announced his plans to impose tariffs on imports from several countries upon assuming office on January 20, including a 25 percent tax on all goods entering the United States from Mexico and Canada.

This scenario follows the current administration’s relaxation of some restrictions, though many tariffs remain in place, creating uncertainty in supply chains and driving up import costs.

Potential Price Hikes at Costco
On Tuesday, a senior Costco executive discussed the possible repercussions of Donald Trump’s proposed tariffs, warning that they would drive up the prices of goods in general.

“When it rains, it rains on everyone,” said Gary Millerchip, Chief Financial Officer of the retail chain, during a conference call with investors about the company’s earnings.

Millerchip elaborated that, “Of course, tariffs increase costs. That’s not something we view as generally positive.”

The CFO noted that it remains unclear what impact Trump’s planned tariffs will have on the “timing and scope of changes” at Costco and other retailers.

Meanwhile, U.S. media outlets have reported that members of Trump’s transition team have dismissed Millerchip’s concerns.

“President Trump has promised tariff policies that protect American manufacturers and workers from unfair practices by foreign companies and markets,” said Brian Hughes, a spokesperson for Trump’s transition team, in statements to international media.

“As he did in his first term, he will implement economic and trade policies to make life more affordable and prosperous for our nation,” Hughes added.

Retaliation threats from Canada

In response, Canadian officials have threatened to retaliate by banning imports of liquor produced in the United States and cutting off electricity to millions of American households.

Trump has also stated his intention to impose an additional 10 percent tariff on all Chinese products, on top of existing tariffs. These measures would be enacted via executive order and would not require Congressional approval.

Costco’s Strong Performance
It’s worth noting that Costco exceeded first-quarter revenue and profit expectations on Thursday. The retailer’s bulk and discounted offerings, appealing to budget-conscious U.S. shoppers, drove sales growth at the start of the holiday season.

Shares of the company, which have risen 51 percent so far this year, gained nearly 2 percent in Monday’s trading.

“Seasonal sales appear to be very strong… people are shopping very practically this year, but trends are positive,” Millerchip added.

In an effort to avoid a dip in sales for the quarter ending November 24, Costco launched early Black Friday deals in early November. The Thanksgiving weekend, which extended into December, could have impacted the company’s quarterly performance.

Costco’s largest rival, Walmart, has also been offering deeper discounts and promotions. Walmart raised its annual sales and profit forecast for the third time this year in November, signaling robust consumer spending.

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