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Walmart told the federal government that the proposed tariffs on China would require it to raise prices from 10% to 25% on a range of consumer products.
The United States should impose tariffs of $ 200 billion on Chinese imports on Monday, which will add to the more than $ 50 billion that are already subject to US import taxes. China has promised to push tariffs back on $ 60 billion worth of US goods.
Walmart sent a letter to the head of the US Trade Representative on September 6, 2018.
"If rates come into effect, Walmart customers will face cost increases for essential items such as car seats, child beds, backpacks, hats, pet products and bicycles ". "For low-income families, a 25% tax on these items would be a heavy burden on household finances."
Walmart sent a statement to 40/29 News after soliciting comments.
"We have submitted comments on the proposed 301 rates because we are concerned about the impact on US suppliers, consumers and manufacturers, as well as on families around the world," the statement said. "We encourage both countries to find short-term solutions to ease trade tensions, which will provide more opportunities for US exports and benefit families in both countries."
The White House alleges that Beijing is stealing trade secrets and forcing American companies to give up their technology in exchange for access to the Chinese market.
Some economists and business analysts suspect Trump of having bigger goals than simply getting China to change its aggressive high-tech industrial policies. Massive tariffs increase costs – and uncertainty – for companies that rely on China for materials and components. Trump could "try to force US companies to change their supply chains and reduce their reliance on China," said Robert Holleyman, a partner in the Crowell & Moring law firm and former US sales representative.
Walmart's letter mentioned challenges related to changing its supply chain.
The letter states that products purchased through its current supply chain have already met the safety requirements of the Consumer Product Safety Commission and the National Highway Transportation Safety Administration. A change of supplier would require new tests and certifications.
Increasing costs could also cause families to buy used car seats or other baby products, thus sacrificing new safety features, according to the letter.
According to the letter, changing the supply chains would also cost Walmart time and money.
The letter also complains of the possible impact on retaliatory tariffs imposed on US exporters.
Walmart China sells American pork, beef, cherries, nuts, wine, apples, cheese and milk. According to Walmart, US producers would be hard pressed to sell foreign consumers higher duties imposed in retaliation for US tariffs.
(Important parts of this article are from the Associated Press Inc. All Rights Reserved This material may not be published, disseminated, rewritten, or redistributed.)
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