Some of the major retailers in the US such as Wal-Mart Inc, Best Buy Co, Target Corp, and others have written a letter to President Trump asking him not to charge high tariffs for all imports coming from China. It is speculated that the Trump administration was preparing to increase its tariffs for Chinese Information technology, telecommunication and also consumer products coming from China to try to force the Chinese government from making changes to their intellectual property laws and their investment practices. The administration was considering imposing about $60 billion in tariffs on different Chinese goods such as footwear, electronics, apparels and even toys.
According to the letter sent to Washington, the retailers are asking the administration to consider the negative impact that the increased tariffs would have on the working families of Americans. If the tariff is increased, it will lead to an increase in the prices of consumer goods and American families would have to pay higher prices for everything that they buy. Section 301 of the Trade Act allows the President to impose higher tariffs on China if they violate any intellectual property rules. The tariff increase would not need to be approved by Congress to take it forward. The White House refused to respond to questions regarding the letter that they had received from the retailers.
The letter is just another example of the growing problems between the Trump administration and that of the business community regarding the trade policy of the country. On Sunday, a number of trade associations that have most of the large businesses in the country as its members sent a letter to the authorities talking about the results that the increased tariffs will have on the economy. Some of the trade associations against the increased tariffs are the Information Technology Industry Council, US Chamber of Commerce, the National Retail Federation and others.
Sandy Kennedy, the President of the Retail Industry Leaders Association who organized the letter, said that the new tariff would completely eradicate the benefits that the new tax system has provided to the economy. The letter sent to the President was signed by 24 companies that 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, JC 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 Companies Inc, VF Corp, and Wolverine World Wide Inc. the letter urged the administration to work with them in order to find a solution.