Trump: U.S. Will Impose 10% Tariff on $300B Worth of Chinese Goods
U.S. President Donald Trump said on Thursday he would impose an additional 10 percent tariff on $300 billion worth of Chinese imports starting Sept. 1, as talks aimed at easing tensions between the world’s two largest economies continue. “Trade talks are continuing, and during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the 250 Billion Dollars already Tariffed at 25%,” Trump tweeted. U.S. and Chinese negotiators ended two days of talks in Shanghai on Wednesday with little sign of progress.
Total Retail's Take: This latest announcement of additional tariffs on goods imported from China has retailers concerned, and investors as well. The news sent retail stocks sliding as investors concerned about the impact the tariffs will have on retailers' bottom lines pulled back. Shares of Gap Inc., Kohl's, American Eagle Outfitters, Macy's, and J.C. Penney all declined in trading yesterday.
Furthermore, the National Retail Federation (NRF), which has been critical of Trump in the past over tariffs on Chinese goods, issued the following statement condemning this latest round of tariff increases: “As we’ve said repeatedly, we support the administration’s goal of restructuring the U.S.-China trade relationship," said David French, senior vice president for government relations at NRF. "But we are disappointed the administration is doubling-down on a flawed tariff strategy that's already slowing U.S. economic growth, creating uncertainty and discouraging investment. These additional tariffs will only threaten U.S. jobs and raise costs for American families on everyday goods.
“The tariffs imposed over the past year haven’t worked, and there’s no evidence another tax increase on American businesses and consumers will yield new results. We urge the administration to bring our allies to the table and find new tools beyond tariffs to achieve better trade relations.”