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A number of retail trade groups have railed against President Trump’s move to impose tariffs on steel and aluminum, concerned that the actions may spark a trade war.
“A tariff is a tax, plain and simple,” said Matthew Shay, president and CEO of the National Retail Federation (NRF), in a statement. “In this case, it’s an unnecessary tax on every American family and a self-inflicted wound on the nation’s economy.”
He noted that consumers are just beginning to see more money in their paychecks as a result of the new tax reforms, but those gains will soon be offset by higher prices for products ranging from canned goods to cars to electronics.
“The retail industry is extremely concerned by the administration’s apparent desire to ignite a trade war, where the net losers will be the very people the president wants to help,” said Mr. Shay. “On top of steel and aluminum tariffs, retailers are troubled by the direction of the ongoing NAFTA negotiations and the threat of additional tariffs on consumer goods from China.”
The order levies duties of 25 percent and 10 percent, respectively, on imported steel and aluminum. Canada and Mexico were made exempt from the action, pending a renegotiation of NAFTA.
Hun Quach, VP of international trade, Retail Industry Leaders Association (RILA), said, "The administration’s desire to challenge other country’s trade violations is an important goal for free and fair trade, but a broadly applied tariff could spark a potential trade war that zaps consumer spending and American exports."
Gary Shapiro, president and CEO, Consumer Technology Association (CTA), said the move could ultimately cost “far more” American jobs than it creates. Said Mr. Shapiro, "The imposition of tariffs will undoubtedly result in previously uninvolved sectors being retaliated against and create a dangerous race to the bottom, which is a threat to our domestic economy and the entire global trading system.”
Several trading partners, including the European Union, have stated that they will slap retaliatory tariffs on key U.S. products in response to the administration’s action. China has criticized the move, but has stopped short of threatening to retaliate so far.
The administration asserts the tariffs will provide protection for American industrial workers and has also called metals production vital to national security.
- Retailers Call Trump Tariffs ‘Self-Inflicted Wound On The Nation’s Economy’ – National Retail Federation
- Aluminum and Steel Tariffs Ill-Advised, Says CTA – Consumer Technology Association
- Retailers Respond To Trump Announcement On Steel And Aluminum Tariffs – Retail Industry Leaders Association
- Trump sets steel and aluminum tariffs but exempts Canada, Mexico – Reuters