Businesses, Trade Groups Ask Trump to Delay September, December Tariffs
Two letters, one from American for Free Trade, and one from Footwear Distributors & Retailers of America, tell President Donald Trump that tariffs will be passed along to consumers, and ask him to change his mind. On Sept. 1, about $112 billion in goods from China will face an additional 15 percent tariff, and another $160 billion in imports will get the same increase on Dec. 15. Trump also said 25 percent tariffs on $200 billion worth of goods from China will go to 30 percent on Oct. 1, but no Federal Register notice has made that official yet.
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"Unfortunately, a large portion of holiday merchandise will still be hit by September and October tariff increases at an even higher rate than was initially anticipated. With some products facing tariffs as high as 30 percent, many businesses will have no choice but to pass along those costs to consumers. Price increases will likely hit shoppers just as they are making their holiday purchases," the 160-group coalition of Americans for Free Trade said. "A tariff delay is the gift you can give American families this holiday season." The coalition includes the National Customs Brokers & Freight Forwarders Association of America, the American Association of Exporters and Importers, the United States Fashion Industry Association and the National Foreign Trade Council.
Footwear Distributors & Retailers of America told Trump that 15 percentage points of tariffs on shoes will cost U.S. customers $4 billion annually. "We understand that delaying some of the tariffs to December was done to avoid the full tax increase on $300 billion in goods that would hit American consumers during the holidays, and we appreciate your decision to delay tariffs on certain footwear items," the FDRA letter said. But, the group said, nearly every type of leather shoe will be hit in September. The organization said that prices from Chinese manufacturers are negotiated in dollars, not the renminbi. "For RMB devaluation alone to offset the 15 percent tariff increase for some shoes, the currency would have to drop by more than 40 percent," FDRA said.