More than 600 U.S. retailers addressed President Trump in a letter urging him against imposing additional tariffs on goods imported from China and pleading him to put an end to the U.S.-China trade war.
The letter sent on Thursday, June 12 was motivated by the ongoing trade disputes between two of the world’s biggest economies.
Ever since the Trump Administration increased the tariffs on $300 billion worth of goods produced in China from 10% to 25% in May, U.S. retailers have suffered grave consequences.
Currently, consumer goods like handbags, bicycles, vacuum cleaners, air conditioners, and luggage are subject to hiked tariffs. As stated in the latter, “Tariffs are taxes paid directly by U.S. companies, not China.”
In response to Trump’s threats to levy taxes on another $300 billion in goods, 150 U.S trade groups gathered in a national advocacy campaign called “Tariffs Hurt the Heartland” and wrote yet another letter to the White House, condemning such plans.
U.S. retail giants – Walmart, Target, and Costco signed the letter together with J. C. Penney, Bauer Hockey, Macy’s, Kohl’s, Burton Snowboards, Puma, Urban Outfitters, Foot Locker, and hundreds of other businesses, both big and small.
The largest employer in the private sector in the U.S., and the world’s biggest retailer – Walmart stresses that increased tariffs will drive the prices up for U.S. consumers.
They would need to pay $1.6 billion more for household appliances each year, $2.5 billion more for footwear, $3.7 billion more for toys, and $4.4 billion more for apparel, according to a report by the National Retail Federation.
If additional tariffs were applied, more than 2 million U.S. jobs would be lost, whereas yearly costs for an American family of four would grow by $2,000, warns Trade Partnership Worldwide LLC in the letter sent on Thursday.
In the hopes of preventing such cost increases, U.S. retailers urged Trump to change his negotiating position by saying “Mr. President, we support your efforts to hold our trading partners accountable, level the playing field for American businesses and forge enforceable trade agreements. We urge your administration to get back to the negotiating table while working with our allies to develop global, enforceable solutions. An escalated trade war is not in the country’s best interest.”
With the G20 Summit scheduled to take place in Osaka, Japan at the end of the month, and a potential meeting between the American and Chinese presidents in the cards, the health of the world economy remains uncertain.