Industry Mostly Pleased With Tariff Delay
Importers welcomed the news that tariffs on the largest tranche of Chinese products will not rise to 25 percent in five days (see 1902240001). “We welcome the Trump administration not raising tariffs to 25 percent,” Consumer Technology Association President Gary Shapiro said. Tariffs “are costing the tech industry an additional $1 billion per month, and the cost of 5G products and parts from China have skyrocketed,” he said. “We urge both sides to move forward to a permanent resolution that will address trade issues with China, while also protecting American leadership in innovation.”
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The National Retail Federation praised the delay as a “positive development, and we encourage the administration to build on this momentum and reach a resolution that will eliminate uncertainty,” CEO Matthew Shay said. “We look forward to continued progress and an agreement that will end tariffs and achieve a more fair and balanced trading relationship” between the U.S. and China.
The Retail Industry Leaders Association, which represents Best Buy, Target and other big-box retailers, commends Trump’s decision to delay the tariff increases “on thousands of everyday products that millions of American families want and need,” Hun Quach, vice president-international trade, said. The “ongoing” trade talks “have been hanging over America's retailers causing uncertainty throughout our supply chain,” she said. RILA urges the administration to “quickly find a path forward that removes all tariffs on everyday consumer products," she said.
“We are encouraged by this latest sign of progress and that the administration seems to have heard the concerns of U.S. businesses and farmers who simply cannot afford more tariffs,” said Tariffs Hurt the Heartland, the free-trade campaign that dozens of trade associations from various industries joined in September (see 1809120026).
One Trump-aligned lobbying group reacted with some dismay. "We urge President Trump to continue focusing on the long term national interests of the American people and resist short-term pressure from Wall Street," Coalition for a Prosperous America's Chairman Dan DiMicco said in a joint statement with CEO Michael Stumo. They said Trump needs to keep the heat on China, and that the tariffs are working to rebuild the U.S. economy. "Our bilateral trade relationship must be rebalanced across a broad array of industries beyond commodities and semiconductors," they said, referring to reports that China will lower the trade deficit by buying more oil and natural gas, agricultural commodities and semiconductors. They said that any agreement must have promises from China that it will not retaliate if the U.S. punishes it for not keeping its promises.