On Thursday, 13th June, Walmart along with over 600 American companies warned US President Donald Trump. They warned Donald Trump that imposing the import duty on China would harm the US economy.
This will cost people their jobs and thousands of consumers will get affected. According to the American media, American industry organizations, including companies of retail, manufacturing and tech sectors, have written a letter to Trump and demanded to end the trade war with China.
The US threatens to raise the duty on an additional $300 billion
US companies say that imposing additional import duties will have a negative impact on US businesses, farmers and common people over the long term. Trade war will harm both countries.
Last month, the US increased the duty on Chinese import of $200 billion from 10% to 25%.
The products on which they increase the tariff include luggage, mattresses, handbags, bicycles, vacuum cleaners, and ACs.
Trump has also threatened to increase the tariff by $300 billion in additional imports. It will include toys, clothes, shoes, TVs and home appliances.
US companies have said that they have to pay the import duty on goods coming from China.
There is an atmosphere of confusion in the market because of uncertainty over the increase and the trade talks between the US-China.
With this our economic growth is in danger.
Average Monthly Expenditure of Families Will Increase
Referring to a report, companies have said that Chinese imports of $300 billion over 25% are a tariff. This will increase the average monthly expenditure of the four-member American family to $2,000.
To keep the rates of Chinese products lower as tariff increases, some US retail companies can also deal with exporters to reduce prices or make production outside China.
Consultancy firm Trade Partnership, which works with industrial organizations, estimates that clothing makers can manufacture and export outside of China, even if the clothes in the US will be 5% expensive.
Increasing tariffs will make shoes 8% and toys 16% more expensive. In America, China is the largest supplier of these two goods. Companies like Nike, Adidas and Under Armour had warned in May that 25% tariff would be imposed on shoes importing from China, then it would be very difficult for the customers.
According to the report, increasing the import tariff, home appliances prices will increase by 3%. Travel related goods will be 10% expensive. David French, senior vice president of the National Retail Federation, says that imposing new tariffs will affect Trump’s vote bank.