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- The Trump administration has doubled down on plans to escalate its trade dispute China next week.
- Many retailers have warned that new tariffs on Chinese imports would force them to raise prices or halt hiring.
- Here’s what they told the Trump administration, according to US Trade Representative transcripts.
- Visit Markets Insider for more stories.
The Trump administration has doubled down on plans to escalate its trade dispute China on Sunday, a move retailers across the country have warned against.
Testifying before US trade officials in June, dozens of retailers said proposed tariffs on $300 billion worth of Chinese imports would raise price tags for American businesses and consumers. That could chip away at one of the brightest spots in the US economy: retail spending.
The US duties are scheduled to take effect in two stages, on September 1 and December 15. China has vowed to retaliate with more tariffs on American products.
Public hearings on the tariffs lasted seven days, with witnesses allowed to speak for five minutes each. Here’s what they told the Trump administration, according to US Trade Representative transcripts.
Reuters
The mere threat that tariffs could be imposed on nearly all remaining imports from China has already accelerated a scramble among importers to find alternative sources of supply. As a result, higher prices are already on the horizon for American families, regardless of the outcome of this investigation, or the products selected for coverage. -Bryan Wolfe, Ascena Retail Group
This will result in an annual cost increase that exceeds $10 million, and eliminates our annual profits entirely. If sales decline, overhead and labor costs will need to be reduced, leading to the elimination of jobs, which in turn, will make our operation unsustainable. Please understand, we are supportive of the President’s trade policy with China. We just need 8 to 12 months more time to complete our transition properly. -Jim Day, 47 Brand, LLC
In imposing tariffs, we will not achieve the goal of protecting IP infringement matters, but penalize US consumers and US companies throughout the, throughout the country. -Christopher Volpe, United Legwear & Apparel Co.
I am requesting that the U.S. Trade Representative and the Trump administration refrain from using tariffs, excuse me, taxes, to reduce the trade deficit. The economic health of my customers, my main street, my business, my employees, and my family hinge on not adding any more burden on the back of small businesses. -Trey Kraus, Carlton’s Men’s Wear, Inc.
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As production moves from China to other countries, compliance with existing regulation and standards is a serious concern. In some cases, American employees work in their partially-owned Chinese factories performing quality control supervision to ensure compliance.
This effort did not happen overnight. -Brent Cleaveland, Fashion Jewelry & Accessories Trade Assoc.
As we enter the third and fourth quarter, the period all retailers achieve profitability, they will see lack of customer enthusiasm for higher prices. Many retailers are already closing stores and price increases will surely hasten their demise. -Jean Kolloff, Quinn Apparel Inc. + Qi Cashmere
We make largely price sensitive, impulse purchase items. So further cost increases cause great harms. This concerns us greatly as a significant number of our members consist of start-up businesses and companies that have been in operation for less than five years. -Karen Giberson, Accessories Council
This scenario would be catastrophic for our company. -Jeff Fischer, Planet Gold Clothing Company Inc.
Because footwear is consumer-stable, and because China dominates the production of these items, every American will feel the adverse effects of these tariffs, which will simply be an additional tax on American consumers. -Marc Schneider, Kenneth Cole Productions Inc.
Reuters
The cost of producing elsewhere in the world may be too costly too, as we are barely profitable now. That means that we either continue sourcing in China, and increase our prices, which will likely mean decreased sales, or we may try to move out which will take more than a year. -Mark Corrado, Leading Lady Inc.
I can say without hesitation that by raising or imposing these new tariffs, 25% tariffs, there will be disproportionate harm to our company, as well as to the consumers who have need of purchasing them. -Mark Flannery, Regalo International LLC
This increased cost will have to be passed onto consumers, due to traditionally low profit margins and their price sensitivity, making these lifesaving products unaffordable to much of the country’s population. -Bradley Mattarocci, Baby Trend, Incorporated
Imposing tariffs to punish the originating country also damages US supply chains and puts these American jobs at risk. While we recognize the issues with China’s IP forged technology transfer practices, we ask ourselves if the cost of tariffs to US companies and consumers causes more harm than the problem they are trying to solve. -Patrick Fox, VF Corporation
These additional duties and costs will result in higher price points in the long term and reduce demand and lower sales of their leather products. -Karen Gilberson, Patricia Nash Designs
See the rest of the story at Business Insider
See Also:
- Buybacks have been keeping stocks strong for years — but the gig might soon be up for these 10 companies
- The stocks most dependent on China are doing great despite the worsening trade war. Here’s why that could continue even as tariffs rise.
- Investors have been plowing money into bitcoin since the start of the US-China trade war
Source: Business Insider – gheeb@businessinsider.com (Gina Heeb)