Tyler Schipper, an economist and associate professor in the College of Arts and Sciences at the University of St. Thomas, spoke with “Minnesota Live” on KSTP-TV about Walmart announcing price increases to supplement tariffs.
From the interview:
Host: It sounds like they (Walmart) are doing their best to not have the tariffs be on some of their more staple-type items. It had to have been a big decision for them to have to say that they’re going to raise the prices.
Schipper: Walmart wanted to stress this was not political. This was a business decision that, if their input costs are going up, at some point – there are pretty small profit margins in retail – they have to pass them down to consumers.
Host: Do we see a ripple effect? Does Walmart become the first and we start to see this ripple down into other grocery chains and big box stores?
Schipper: Walmart is known for having low prices and putting pressure on their suppliers. If they’re having to raise prices, it almost certainly means everybody else is going to have to as well.
