US Companies Join Together To Call On Trump To End Tariffs And Trade War
Around 600 US companies joined together to call on Trump to end his tariffs on Chinese goods. US retailers, tech firms, and major manufacturers urged the White House to immediately reconsider its decision citing that it would only lead to irreversible damage to the economy, billions in losses, and unemployment.
Companies such as Walmart, Gap, Foot Locker, and Levi Straus joined together to write a letter to the US president requesting that he remove the tariffs and put an end to the country's trade war with China.
The letter that was sent to the White House pointed out the tariff's various negative effects and long-term impact on American businesses. The companies further pointed out that the escalating trade war is a no-win situation and that both sides will end up losing.
The call to end tariffs on Chinese imports came just a month after Trump officially increased the tariffs from 10 percent to 25 percent on over $200 billion worth of Chinese goods. The products that were affected included consumer products such as bags, vacuum cleaners, air conditioners, luggage, and clothing.
Several companies had attempted to request an exemption from the higher tariffs, but all requests had been denied. GM had requested the government to exempt their Chinese-made Buick Envision last month. Uber also made the same request for their Chinese-made "Jump" electric bicycles. Both GM and Uber's requests, along with other similar requests from other companies, were denied.
Following the imposed tariff hike on Chinese imports, Trump threatened to once again increase tariff rates for an additional $300 billion worth of Chinese imports. This time the added tariffs would affect products such as appliances, televisions, toys, and shoes. If the added tariffs are imposed, US consumers should immediately expect higher prices for these types of goods.
The letter attempted to inform the White House that the taxes are actually paid by the US companies and not China. This directly results in higher prices for end-users in the United States.
Some companies have announced strategies to combat the effects of the increased tariffs. However, higher taxes still affect production costs and price hikes are still expected if companies want to be profitable.
The business coalition that organized to write the letter to the White House currently has the backing of major players in the retail, manufacturing, tech, and agricultural industries. The letter to the White House was sent ahead of the US Trade Representative's Office's plans to hold a public hearing this week to discuss the added tariffs.