A recently released study by the National Retail Federation urged the Office of the U.S. Trade Representative to avoid 25 percent tariffs on $300 billion in Chinese goods. The report prepared by the Trade Partnership Worldwide projected that American consumers will have to pay $4.4 billion more each year for apparel, $2.5 billion more for footwear, $3.7 billion more for toys, and $1.6 billion more for household appliances if the administration proceeds with the additional tariffs.
David French, Senior Vice President-Government Relationa, NRF has urged the Office of US Trade Representative to reevaluate a strategy based solely on tariffs and work with its allies to put international pressure on China.
According to him, it would be impossible for all market participants in the industry to simultaneously move sourcing to other countries if the tariffs are levied. The retailers would be forced to continue to use Chinese suppliers and pass on higher costs to their customers – just in time for the holiday shopping season.
As part of monthly consumer surveys conducted by Prosper Insights & Analytics, NRF has been tracking the public’s growing concern over the trade war. The June survey found 81 percent of consumers are “concerned the ongoing trade war will cause prices to increase,” a 12 percent increase since November 2018.
In addition to French’s oral testimony, NRF submitted comments to USTR detailing the negative economic impact of the proposed tariffs on American businesses, workers and consumers.
