Economy Watch: Major Retailers Urge No New Tariffs on Chinese Goods

Twenty-four large U.S. retail brands sent an open letter to President Trump, citing their concern about the negative impact of further tariffs on imported goods.

logistic-2636250_1920Twenty-four major U.S. retailers, who represent an aggregate of about $1.5 trillion in annual sales, sent an open letter to President Trump on Monday, urging him not to impose further tariffs on imported goods from China.

“…We are concerned about the negative impact as you consider remedial actions under Section 301 of the Trade Act…” the letter said. “Investigating technology and intellectual property policies and practices is critically important to our innovative economy…Yet were this investigation to result in a broadly applied tariff remedy on imports from China, it would hurt American households with higher prices and exacerbate a U.S. tariff system that is already stacked against working families.”

The letter reiterated its point by asserting that consumers already pay high import taxes, as much as 32 percent and 67 percent on clothes and shoes.

“Applying any additional broad-based tariff as part of a Section 301 action would worsen this inequity and punish American working families with higher prices on household basics like clothing, shoes, electronics, and home goods.”

The letter further asked the administration to “carefully consider the impact on consumer prices. We must do right by American families while also addressing harmful technology practices.”

The retailers included:

  • Abercrombie & Fitch Co.
  • American Eagle Outfitters Inc.
  • Big Lots Inc.
  • Chico’s FAS Inc.
  • Columbia Sportswear Co.
  • Costco Wholesale Corp.
  • Dollar Tree Inc.
  • Gap Inc.
  • Havertys Furniture Cos Inc.
  • J.C. Penney Co. Inc.
  • Jo-Ann Stores LLC
  • Kohl’s Corp.
  • Ikea North America Services LLC
  • Levi Strauss & Co.
  • Qurate Retail Group.
  • Sears Holdings Corp.
  • The Michaels Cos. Inc.
  • VF Corp. and
  • Wolverine World Wide Inc.