Higher Prices
Walmart is raising its prices as a result of the ongoing tariff negotiations. The company, which is both the largest retailer in the world and the leading employer in the U.S. with approximately 2.1 million employees, blamed increased cost of goods because of tariffs for the increase. U.S. President Donald Trump criticized the move, citing Walmart’s profits and suggesting the company should, “Eat the tariffs.” The announcement is likely the first of many as retailers seek a way to manage the increasing costs of acquiring goods.
Analysis and eternal perspective: It is Economics 101. Once tariffs were announced, it was always a matter of when, not if. When it costs more to acquire goods, it will inevitably mean those goods will cost more for the consumer to buy. Walmart has long marketed itself as a low-cost place to shop, and its footprint (more than 10,000 stores in the world) makes it highly likely you have been in one of its stores. Despite his criticism, President Trump and his team were almost certainly expecting an announcement like this, as they understand that a business has to maintain a profit margin to keep the doors open. The weeks and months ahead—should the tariffs remain in effect—are certain to include constant jockeying by retailers, consumers, and decision makers.
As a Jesus follower, it would be prudent for you to both plan wisely for the economic environment (Pr. 6:6-11) and live generously with those who are most impacted (Pr. 28:27). It is easy to forget we live in the most prosperous time the world has ever known, and for those—like me—living in America, the most prosperous nation the world has ever known. Look for ways this week to be grateful for what you have, and to live generously.
Note: You may be experiencing financial need right now. If so, you are not alone! The God of the universe loves you, sees you, cares for you, and prioritizes you! He has also gone ahead of you to prepare an eternal place for you, so be encouraged even in the midst of challenging times!
The following article originally appeared in Thann’s “The Equipped” Weekly Newsletter. For more information on Thann’s weekly email, click here.