Walmart warns of tariffs, price increases
The nation’s largest retailer has sounded the alarm that American consumers are the ones that could suffer the most due to expanded tariffs placed on goods and parts bought from China.
In a letter dated Sept. 6 sent to U.S. Trade Representative Robert Lighthizer, Walmart warned that it may have to raise prices of products if the Trump Administration goes through with its latest round of proposed tariffs. The letter had no impact on the administration, however. On Sept. 17, it went ahead with 10% tariffs on $200 billion worth of imports from China. The tariffs, which go into effect Sept. 24, will jump to 25% at the end of this year.
“As the largest retailer in the United States and a major buyer of U.S. manufactured goods, we are very concerned about the impacts these tariffs would have on our business, our customers, our suppliers and the U.S. economy as a whole,” Walmart wrote in the letter.
The retailer went on to warn that if the tariffs go into effect, its customers will face cost increases for such items as car seats, cribs, backpacks, hats, pet products and bicycles. And it noted that “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 is by no means alone in voicing its criticism of the escalating trade war with China. The retail’s industry major associations, including the National Retail Federation and the Retail Industry Leaders Association, and more than 100 organizations recently launched a multi-industry coalition — Americans for Free Trade — aimed at opposing tariffs and highlighting the benefits of international trade to the U.S. economy.
Hun Quach, VP of international trade for the Retail Industry Leaders Association, commented that consumers — not China — will bear the brunt of the tariffs.
“We are disappointed to see that warnings from importers and exporters representing every sector of the U.S. economy have not been heeded with no time for mitigation,” Quach said. “… While we support the Administration’s goal of holding our trade partners accountable, American families, not China, will be paying a new tax on everything from toilet paper to home goods to furniture and pet supplies.”
In a letter dated Sept. 6 sent to U.S. Trade Representative Robert Lighthizer, Walmart warned that it may have to raise prices of products if the Trump Administration goes through with its latest round of proposed tariffs. The letter had no impact on the administration, however. On Sept. 17, it went ahead with 10% tariffs on $200 billion worth of imports from China. The tariffs, which go into effect Sept. 24, will jump to 25% at the end of this year.
“As the largest retailer in the United States and a major buyer of U.S. manufactured goods, we are very concerned about the impacts these tariffs would have on our business, our customers, our suppliers and the U.S. economy as a whole,” Walmart wrote in the letter.
The retailer went on to warn that if the tariffs go into effect, its customers will face cost increases for such items as car seats, cribs, backpacks, hats, pet products and bicycles. And it noted that “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 is by no means alone in voicing its criticism of the escalating trade war with China. The retail’s industry major associations, including the National Retail Federation and the Retail Industry Leaders Association, and more than 100 organizations recently launched a multi-industry coalition — Americans for Free Trade — aimed at opposing tariffs and highlighting the benefits of international trade to the U.S. economy.
Hun Quach, VP of international trade for the Retail Industry Leaders Association, commented that consumers — not China — will bear the brunt of the tariffs.
“We are disappointed to see that warnings from importers and exporters representing every sector of the U.S. economy have not been heeded with no time for mitigation,” Quach said. “… While we support the Administration’s goal of holding our trade partners accountable, American families, not China, will be paying a new tax on everything from toilet paper to home goods to furniture and pet supplies.”