Reuters/Danny Moloshok
- The Trump administration raised tariffs on Chinese products last week after trade negotiations stalled.
- From footwear to electronics, that round of tariffs would hit significantly more consumer items than previous tranches.
- An increasing number of major US companies have warned the proposed tariffs would force them to raise prices.
- View Markets Insider’s homepage for more stories.
After trade negotiations between Washington and Beijing stalled last week, the Trump administration increased the tariff rate on Chinese imports and threatened to target an additional $300 billion worth of products.
From footwear to electronics, the latest round of tariffs would hit significantly more consumer items than before. And an increasing number of major US companies have warned the proposed tariffs would force them to raise the prices of those products.
Nike, Adidas, Under Armour, and other footwear companies
Rick Maiman/AP
A group of 173 footwear companies including Nike, Adidas, and Under Armour urged President Donald Trump to remove shoes from the latest tariff list. With the industry already facing a $3 billion duty bill every year, the companies said any further increase in the cost of importing shoes would be felt by customers.
"There should be no misunderstanding that U.S. consumers pay for tariffs on products that are imported," the letter said. "It is an unavoidable fact that as prices go up at the border due to transportation costs, labor rate increases, or additional duties, the consumer pays more for the product."
Walmart
AP
Get ready for higher price tags at the largest retailer in the US. Walmart imports more products than any other company in the country, according to the Journal of Commerce.
"Increased tariffs will lead to increased prices for our customers," Walmart chief financial officer Brett Biggs told reporters on Thursday after reporting its best first-quarter sales performance in nine years.
Macy’s
AP/Charles Sykes
Macy’s said more tariffs would likely force the department store giant to increase prices on a wide range of apparel and accessories categories, including both store labels and national brands.
"When you do the math, it’s hard to find a path through that wouldn’t impact customers," Macy’s chief executive Jeff Gennette told investors on Wednesday.
See the rest of the story at Business Insider
See Also:
- Share your opinion — become a BI Insider!
- 22 details in the ‘Game of Thrones’ finale you might have missed
- GOLDMAN SACHS: These 16 stocks will get crushed on a sharp market pullback. Here’s a dirt-cheap way to profit from their demise.
SEE ALSO: The cost of Trump’s bailout program for farmers is poised to more than double
Source: Business Insider – gheeb@businessinsider.com (Gina Heeb)