Walmart is where the trade war comes home
by Nathaniel Meyersohn @CNNMoney September 19, 2018: 10:44 AM ET
new_2new_1
SHARE
OREGON UPDATE
Two weeks ago, Walmart asked the Trump administration to walk back its plan to put tariffs on Christmas lights, shampoo, dog food, luggage, mattresses, handbags, backpacks, vacuum cleaners, bicycles, cooking grills, cable cords and air conditioners.
Two weeks ago, Walmart asked the Trump administration to walk back its plan to put tariffs on Christmas lights, shampoo, dog food, luggage, mattresses, handbags, backpacks, vacuum cleaners, bicycles, cooking grills, cable cords and air conditioners.

"The immediate impact will be to raise prices on consumers and tax American business and manufacturers," Walmart said.

The administration was unmoved. On Monday, it pressed forward with 10% tariffs on those products and $200 billion worth of other imports from China. The tariffs, which take effect next week, will jump to 25% at the end of the year.

The latest round of tariffs brings the US trade war with China directly to Walmart (WMT), the country's largest retailer, and hits the everyday products it sells.

Raise prices or take the hit

Other retailers and consumer goods companies, including Ace Hardware and Joann fabric and craft stores, also lobbied the administration.

Target (TGT) said the tariffs will "hurt American consumers," and said working families will pay more for school and college essentials like notebooks, calculators, binders and desks.

The administration did not bend to the company's plea. It imposed tariffs on those goods — although it did spare bicycle helmets, high chairs, car seats and playpens from the final list. It also left off Apple Watches and Air Pods, a reprieve for Apple.

Target and Walmart will now face a tough choice: They can absorb the higher costs from tariffs by taking a hit to their profit margins, or they can pass some of the price increases on to their customers.

"Either consumers will pay more, suppliers will receive less, retail margins will be lower, or consumers will buy fewer products or forego purchases altogether," Walmart warned in its letter.

The National Retail Federation, a trade group, estimated that a 25% tariff on furniture would cost Americans $4.5 billion more per year, while a 25% levy on travel items like luggage and handbags would cost an additional $1.2 billion.

For Full Article Click Here.
NEWS
cnnmoney_blue.svg
Advertisement
The Chamber of Medford/Jackson County
101 E. 8th St.  |  Medford, OR 97501
Phone: (541) 779-4847
Get the latest installment with best practices, examples, and SEO tips straight to your inbox each week.
Subscribe