Walmart has issued a warning in a letter to U.S. Trade Representative Robert Lighthizer that the company may have to raise prices after the Trump administration moved forward with its plan to expand tariffs on Chinese imports.
CNN Money reported that two weeks before the most recent tariffs were placed on Chinese goods, Walmart made a plea in a letter to Lighthizer to refrain from placing tariffs on products like Christmas lights, shampoo, dog food, backpacks, vacuum cleaners and bicycles, among other items.
“The immediate impact will be to raise prices on consumers and tax American business and manufacturers,” Walmart said in the letter.
Despite the request from the retail giant, the Trump administration on Monday went on to slap 10 percent tariffs on those products in addition to $200 billion worth of other imports from China amid the escalating trade war between the world’s top two economies.
“Either consumers will pay more, suppliers will receive less, retail margins will be lower, or consumers will buy fewer products or forego purchases altogether,” Walmart warned in the letter.
According to CNN Money, 10 percent of the company’s sales last year were estimated to have been linked to Chinese imports or Walmart’s investments in Chinese businesses.
Walmart, which controls 10 percent of the U.S. retail market, also said in the letter that tariffs on imported bicycle parts would have negative effects on families.
“Tariffs on these parts would make U.S. manufacturing uncompetitive and drive up the price of bicycles for children and families,” Walmart told Lighthizer.
According to CNN Money, retailers typically order goods at least six months in advance. And due to the administration’s trade war, many retailers are struggling to find new options for the coming year.
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Walmart warns Trump: Your tariffs may force us to raise prices https://t.co/o9cZ4Fs7S8 pic.twitter.com/8bo69n5M3O
— The Hill (@thehill) September 21, 2018
Of course, Trump’s temper tantrums are going to cost all of us. I have yet to see those returning jobs he promised.
Those jobs aren’t coming back. As Apple pointed out, it costs too much to make many products here. These companies are being squeezed. The consumers are being squeezed. But hey, Trump fans think it’s a small price to pay to make America great again.
Wait till they find out how much this trade war really is going to cost them. And it will be much more than money.
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