Retailers may be forced to raise prices
Retailers may be in for higher costs after President Donald Trump said another round of tariffs on Chinese imports is coming.
According to CNBC, the president said that on Sept. 1 the U.S. will add a 10% tariff on the remainder of the Chinese imports. Many consumer products — including clothing, shoes and electronics — had been spared from the last three rounds of tariffs. But the remaining $300 billion of China-made goods are now targeted.
Many retailers have voiced their disapproval of President Trump’s “tariff war” with China. According to CNN Business, more than 600 companies wrote to the White House in hopes of persuading the president to end the trade war with China. In May, the Trump administration increased its tariffs from 10% to 25% on $200 billion worth of Chinese goods.
The National Retail Federation’s (NRF) David French warned back in May that American consumers would face higher prices and U.S. jobs would be lost if Trump made good on a threat to raise duties from 10% to 25% on $200 billion in Chinese goods. But Trump’s threat became reality and China subsequently announced that it will enact tariffs on more than 5,000 U.S. products in retaliation for Trump’s decision.
"We know firsthand that the additional tariffs will have a significant, negative, and long-term impact on American businesses, farmers, families and the U.S. economy," the companies said in the letter, reported by CNN. "An escalated trade war is not in the country's best interest, and both sides will lose."