Retailers Push Back as Suppliers Seek to Offset Tariff Costs

US retailers haggle with suppliers after Trump tariffs
🛍️ Disputes between US retailers such as Walmart and Target and their suppliers have gained prominence due to the tariffs imposed by the Trump administration on aluminum and other imports. These tariffs have significantly increased production costs for suppliers, who are now trying to pass these costs on to retailers. However, retailers are resisting price increases, fearing that this will damage competitiveness and affect consumer demand in an already price-sensitive market.💵 The disagreement revolves around when and how these increases should be incorporated into product prices. Suppliers argue that tariffs are a heavy burden on their operations, as they directly affect the raw materials used to manufacture products. Meanwhile, retailers are concerned about the impact that the price increase could have on consumer behavior, especially in a still volatile economic scenario. As a result, both parties are in something of a stalemate, trying to find solutions that balance the interests of everyone involved.🇺🇸 To mitigate the impact of tariffs, some suppliers are considering alternatives such as moving production to countries with lower costs or negotiating a sharing of costs with retailers. These strategies could help alleviate some of the financial pressure, but there are still uncertainties about the effect of these changes on supply chains and consumer prices. The dispute reflects a broader scenario of how trade policies, such as tariffs, can create tensions between different links in the supply chain and directly influence the prices of products on the market. Source: Reuters
Oil climbs 1% as Trump plans tariff on countries that buy Venezuelan oil, gas
📈 Oil prices rose by 1% following President Donald Trump’s announcement of a 25% tariff on countries that buy oil and gas from Venezuela. This measure aims to further restrict Venezuelan oil trade and increase pressure on the government of Nicolás Maduro, in line with a previous sanctions policy. Despite the initial impact, oil price gains were moderated by the extension of the deadline given to Chevron, the largest US oil producer in Venezuela, which now has until May 27 to shut down its operations in the country.💰 In addition, the Organization of the Petroleum Exporting Countries and allies (OPEC+) will probably go ahead with the planned increase in oil production in May, which could impact the global market while keeping prices under control. The production increase has been discussed amid ongoing negotiations between the US and Russia to end the war in Ukraine, which could result in a greater supply of Russian crude oil returning to global markets. The possibility of a greater volume of Russian oil available raises concerns, especially for investors who closely monitor geopolitical tensions.🏛️ The markets were also influenced by additional US sanctions against Iranian oil exports, including measures targeting Chinese refineries. At the same time, investors are waiting for Trump to signal more tariffs on other products, such as cars, aluminum and pharmaceuticals. The scenario for oil is also affected by factors such as global demand, US fiscal policy and the progress of negotiations on the ceasefire in the Black Sea between US and Russian authorities, all of which directly influence price fluctuations. Source: Reuters

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