Retail trade groups: 25% Tariffs a burden for American families

Port of Los Angeles, US (Source: The Port of Los Angeles)

Convinced that the 25% tariffs on goods imported from Mexico and Canada will hurt American families, fashion retailers and importers on Tuesday called on the Trump administration to open border talks to avoid a devastating trade war with the US's two largest trading partners.

The US also announced an additional 10% tariff on imports from China, bringing the total tariff on goods from that country to 20%.

Washington's latest move has prompted China to retaliate with 15% tariffs on many US exports. Canada announced plans to impose tariffs on $100 billion of US goods within 21 days, while Mexico will announce its own tariffs on Sunday.

The delay in imposing tariffs by Canada and Mexico could be a sign that leaders in both countries still hope to negotiate a way to lessen the long-term impact of the tariffs.

Tariffs on our largest trading partner would hurt US consumers

"The decision to impose tariffs on our North American neighbors and two of our largest trading partners is a significant measure," David French, executive vice president of government relations for the National Retail Federation, said in a press release. "Unfortunately, it is one that will only hurt hardworking Americans and the businesses that strive to provide customers with the products they want and need on a daily basis."

"Tariffs are just one tool at the administration’s disposal to achieve a secure border, and we urge it to explore other options to accomplish the same goals. As long as these tariffs are in place, Americans will be forced to pay higher prices on household goods."

"We urge the Trump administration and our Canadian and Mexican counterparts to work together to quickly resolve our outstanding border security issues.”

Target (NYSE: TGT) CEO Brian Cornell warned Tuesday that tariffs on imports from Mexico could drive up retail prices.

$301 Billion Burden on the US Economy

The total value of additional tariffs on imports has reached $301 billion, increasing the average tax rate from 2.4% to 11.7%, according to Dan Anthony, president of research firm Trade Partnership Worldwide.

“These new tariffs are compounding rapidly. Amid other hints at hitting hard on the European Union and other allies as well … each [new round of] tariffs snowballs into a growing — and potentially crushing — burden on American businesses and hardworking American families,” said Steve Lamar, President and CEO of the American Apparel & Footwear Association (AAFA).

“Uncertainty and instability are corrosive, undermining the vitality of our consumer-driven economy, and the 3.5 million American jobs created by our industry.”

Call for sensible trade policy

Lamar called on U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick to begin discussions on “safeguards” to ensure sensible trade policy that balances the interests of U.S. imports and exports.

He also urged Congress to exercise its constitutional role in tariff policy to ensure that trade measures achieve their clear objectives, and to restore and extend trade agreements that are favorable to the United States and provide stable market access.

Businesses are changing their supply chains to adapt

Some businesses have already begun adjusting their supply chains to adapt to the new tariffs. On Tuesday, Canadian model railway importer Rapido announced plans to open a warehouse in Buffalo, New York. This way, shipments from China to Buffalo will be subject to only 20% tariffs, instead of 25% if the goods have to be transported across the border from Canada to the United States.

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Source: Phaata.com (According to Freightwaves)

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