US retailers resist price hikes due to Trump tariffs

U.S. retailers, including Walmart and Target, are in tense discussions with suppliers about raising prices. The discussions come after President Trump's tariffs increased costs for many products. Retailers are wary of increasing prices, fearing they could lose customers. The negotiations involve various items, such as kitchenware, toys, and accessories. The way retailers handle price changes is complicated, requiring at least a 60-day notice. Suppliers, like David Dalquist of Nordic Ware, are feeling the pressure as their costs rise. They have to carefully navigate price increases to avoid losing shelf space at major retailers. Retailers like Walmart scrutinize every cost before agreeing to price hikes. This puts pressure on suppliers, as they risk being replaced if their prices are too high. For instance, in kitchenware, there are many alternatives available, making it hard for suppliers to maintain their prices without affecting sales. Target is also exploring how pricing will change across its product lines. Some suppliers are considering cheaper manufacturing locations to help keep prices manageable. However, the situation remains uncertain as retailers and suppliers negotiate. In the toy industry, MGA Entertainment is trying to negotiate a price hike on its products made in China. The CEO mentioned that retailers are resistant to price increases because consumers are already under financial strain. As a result, both retailers and suppliers will have to find a way to share the burden of rising costs.