Costco CEO reveals how tariffs will impact prices for shoppers

Worried about tariffs driving up prices? You’re not alone. Business leaders everywhere are watching closely. But here’s some news from Costco that might ease your mind.

Costco’s CEO, Ron Vachris, recently spoke about the issue. The takeaway? Costco isn’t planning huge price hikes. Or any crazy changes.

How Costco Plans to Fight Rising Costs

Vachris explained on a recent earnings call that Costco has a plan. A plan to keep prices reasonable. It involves using their size and smarts. Think global buying power. Strong relationships with suppliers. And good old innovation.

He did mention some challenges. Things like foreign exchange rates could create problems. And tariffs? Hard to predict the exact impact. But Costco’s team is staying flexible. Their main goal? To protect members from cost increases.

Remember the Shipping Crisis? Costco Does.

Costco knows how to get creative. Remember the supply chain chaos a few years back? In 2021, they did something pretty wild. They rented their own container ships. Yes, you read that right. This helped them sidestep the global shipping mess.

Why is this important? Because about a third of Costco’s U. S. sales are imports. And less than half of those come from China, Mexico, and Canada.

Costco and Walmart: Built to Last?

Walmart is in a similar boat. They say two-thirds of their U. S. goods are made here. Or assembled here. Or grown here. Analysts at UBS think Costco and Walmart are well-positioned. They expect them to weather the tariff storm better than most.

What Shoppers Really Want Right Now

Costco’s CFO, Gary Millerchip, also weighed in. He says shoppers are focused. Focused on quality. Value. And new, exciting products.

People are still spending. But they’re being careful. Millerchip thinks this could become even more true. Especially if inflation and tariffs start to bite.

Costco: A Retail Giant

Costco is huge. Almost 900 stores worldwide. And $250 billion in sales this year alone. What they do matters. Keep an eye on this story. It affects your wallet.