For American retailers, what Trump gives, Trump takes.
President Donald Trump's government, which declared just 10 days ago that it would delay some of their new tariffs on Chinese goods by December, has hit the retail sector in one fell swoop: new dues are being raised from 10% to 15%, after China threatened to impose additional tariffs on US $ 75 billion in US goods.
He also said that the $ 250 billion in goods and products will already be taxed at $ 25% will see the rate rise to 30% from October 1st.
Trump had earlier warned on the day that he intended to escalate the trade war with China, and sparked a new demand on Twitter that US companies seek alternatives to manufacturing goods in China. Some major retailers had announced that they could use the leverage to keep the costs from being passed on to consumers at a 1
The National Retail Federation, a
"There are no winners in a trade war, and at the moment losing both sides," said Jonathan Gold, vice president of supply chain and customs policy of the group. "American companies and consumers are still trapped in the crosshairs."
Home Depot Inc., Lowe's Cos., Mattel Inc., Hasbro Inc., Walmart Inc., Target Corp., Best Buy Co., Macy's Inc., Kohls Corp., JC Penney Co. and the Toy Association did not respond immediately to e-mail requests for comments.
David French, senior vice president of government relations at the NRF, said it was "impossible" for companies to plan for the future in the current climate.
"The government's approach clearly does not work, and the answer is no longer taxes on American businesses and consumers," he said. "Where does that end?"
By May, the average US consumer had largely avoided the direct impact of US tariffs on Chinese imports. In the previous rounds, the focus was more on agricultural products such as fish and produce, as the Trump government tried to circumvent these setbacks, which could entail the taxation of consumer goods. But consumer goods, such as handbags, were added to the list this spring, and the coming rounds should range from shoes to electronics.
"We urge both governments to cease all punitive tariffs and return to the negotiating table," said Rick Helfenbein, President and Chief Executive Officer of the American Apparel & Footwear Association, in an email after China's $ 75 billion Round had first been announced. "It is time for us to end this pointless ping-pong game before our economies and our consumers are unduly damaged." Tariff increases. "
" For two and a half years we were promised a new and innovative approach. However, we were suggested a trade strategy from the 1930s that would pose a catastrophe for American consumers, American companies, and the US economy, "Helfenbein said.
" The president said he wanted American companies to stop working in China, but he does not seem to understand that moving a supply chain is incredibly complicated and expensive. It takes years to build relationships that meet compliance standards and deliver quality products, but we have weeks and, in this case, days. So you do not bargain.
The Consumer Technology Association, a trade group representing more than 2,200 companies, hosting CES annually, a massive consumer electronics show in Las Vegas.
"These escalated tariffs are the worst economic mistake since the Smoot-Hawley Customs Act of 1930 – a decision that catapulted our country into the Great Depression," said Gary Shapiro, president and CEO of CTA, in a statement. "Enough is enough."