Companies baulk at tariffs
THE cost of President Donald Trump’s latest tariffs on Chinese goods will either be passed on to consumers, or taken from profits, several US companies claim.
“The American people are being misled by this administration that China is paying for these tariffs. This is a tax on them, or on the businesses that are bringing products to America,” said Win Cramer, chief executive of Jlab Audio, a California company that makes headphones.
Cramer, who has suspended plans to hire more staff in light of the tariff threat, joined a conference call organised by “Tariffs Hurt the Heartland,” a campaign of trade organisations to a policy of a president who has referred to himself as “tariff man”. The group released data showing US consumers paid $6 billion in tariffs in June, up 74 per cent from the year-ago period.
The conference call was organised in response to Trump’s announcement last week of plans to enact a 10 per cent tarber’s iff on $300 billion in Chinese goods on September 1, a move that would affect a broad swath of consumer goods spared in earlier tariff rounds.
Separately, Consumer Technology Association warned Trump’s latest tariffs could lift payments on electronics and other items by $1 billion or more.
Participants said it is difficult in many cases to find suitable alternative suppliers to China because they may lack infrastructure or know-how on meeting US safety standards, such as for lead-free toys and other items.
Hiking prices would dent sales, while a decision to eat the costs would harm the business, companies said.