US retailers urge Trump to halt tariffs

White House will unveil $60b package on China this week

US retailers on Monday called on President Donald Trump not to go ahead with punitive tariff plans on China to avoid an adverse effect on the US economy and consumers.

Three associations — the Retail Industry Leaders Association, the American Apparel & Footwear Association and the National Retail Federation — sent a letter to Trump expressing their concerning about the detrimental impact the tariffs could have on US families.

The White House reportedly will announce this week or next about $30 billion to $60 billion tariffs on Chinese exports, especially technology and telecommunications, after a Section 301 investigation of China’s intellectual property policy and practice.

The Washington Post, quoting administration officials, reported on Monday that Trump will unveil the $60 billion annual tariff package against China by Friday.

Section 301 of the US Trade Act of 1974 is regarded by some as outdated, and unilateral action is inconsistent with WTO dispute settlement principle.

The letter from the three retail associations is the latest following a letter on Sunday by 45 trade associations pleading for Trump to reconsider tariffs on China, fearing a “chain reaction of negative consequences for the US economy”.

The US Chamber of Commerce, the world’s largest trade federation that represents more than 3 million businesses, voiced its strong opposition to Trump’s tariffs on China in a statement issued on Thursday.

The retailers claimed that they and their membership fought for Trump’s tax reform but are concerned that any benefits from reform for retailers and families will be wiped out by broadly applied tariffs on everyday consumer products.

The letter was signed by 25 companies that boast $1.5 trillion in annual sales and tens of millions of US jobs, such as Walmart, Target, Sears, Costco, J.C. Penney, Macy’s, Best Buy, Abercrombie & Fitch and Columbia Sportswear.

The letter and a news release, posted on the website of Arlington, Virginia-based RILA, claim the broad tariffs would “punish American working families with higher prices on household basics such as clothing, shoes, electronics and home goods”.

Sandy Kennedy, president of RILA, said that the tariffs could set the industry back.

“This is not American industries crying wolf. Higher tariffs will mean higher costs to businesses and in turn higher prices for American families,” Kennedy was quoted as saying in the news release.

“Tariffs are a hidden tax on Americans — plain and simple. More than 41 percent of clothing, 72 percent of footwear and 84 percent of travel goods sold in the US are made in China,” said Rick Helfenbein, president and CEO of AAFA.

“A tariff on these products would be a tax on every American. In addition to increasing costs for American families, this action could result in retaliatory tariffs that target American businesses, resulting in job losses.”

Trump’s recent moves have been seen as fulfilling a presidential campaign promise, especially ahead of the midterm elections this fall.

China, the European Union and many other US trading partners have said that they will take countermeasures.