US Trade Implores Trump to Delay Tariff Hike

RAPAPORT... More than 160 trade groups urged US President DonaldTrump to postpone further tax increases on Chinese goods imported to the US, fearingthey would affect holiday sales. "We are writing with an urgent request that you postponeall tariff-rate increases," the Americans for Free Trade Coalition, whichrepresents members of the industry, said in a letter last week. "[They] come atthe worst possible time, right in the middle of the busy holiday...period. Actionis needed by you to protect American businesses, workers and consumers." The appeal, signed by business groups including theNational Retail Federation (NRF), the Fashion Jewelry & Accessories TradeAssociation and the Precious Metals Association of North America, comes inresponse to an announcement by the US government that tariffs are due toincrease even further in October. The US Trade Representative now intends to raise all 25%tariffs to 30% and all taxes that were previously 10% will be 15% beginningOctober 1, it said. These hikes are in addition to those that went into effect September1. Further tariffs on other goods will be applied on December 15. "A large portion of holiday merchandise will still be hitby September and October tariff increases at an even higher rate than wasoriginally anticipated," the letter noted. "With some products facing tariffsas high as 30%, many businesses will have no choice but to pass along thosecosts to consumers. Price increases will likely hit shoppers just as they aremaking their holiday purchases." While the businesses stated they were also opposed toChina's tariffs on the US, they said increasing US taxes so steeply, and leavingUS retailers with too little time to source from other suppliers, was not anadequate solution. "US consumers are driving the growth of the US economy,"the letter added. "Let's ensure consumer confidence remains high and economicprosperity continues. A tariff delay is the gift you can give American familiesthis holiday season." Image: Shoppers in a mall at Chirstmas. (Pixabay)