Walmart warns Trump rates could lead to higher prices

Walmart issued a warning in a letter to a US trade representative. Robert LighthizerRobert (Bob) Emmet LighthizerMcConnell Urges GOP Senators to Call Trump About Tariffs Business Prepares for Commercial Warfare MORE that the company may need to raise prices after the Trump administration has made progress in its plan to expand tariffs on Chinese imports.

CNN Money said that two weeks before the latest tariffs are applied to Chinese products, Walmart pleaded in a letter to Lighthizer to refrain from setting tariffs on products such as Christmas lights, shampoos , the other elements.

"The immediate impact will be to raise prices on consumers and to tax US companies and manufacturers," Walmart said in the letter.

Despite demand from the retail giant, the Trump administration continued Monday to impose tariffs of 10% in addition to the $ 200 billion of other imports from China.

"Either consumers will pay more, suppliers will receive less, retailers' margins will be lower, or consumers will buy fewer products or give up their purchases," Walmart warned in the letter.

According to CNN Money, 10% of last year's sales would have been related to Chinese imports or Walmart's investments in Chinese companies.

Walmart, which controls 10% of the US retail market, also said in the letter that tariffs on imported bicycle parts would have negative effects on families.

"Prices on these parts would make US manufacturing uncompetitive and increase the price of bicycles for kids and families," Walmart told Lighthizer.

According to CNN Money, retailers generally order products at least six months in advance. And because of the administration's trade war, many retailers are struggling to find new options for the coming year.

In its own letter to Lighthizer, the National Retail Federation warned that the Trump administration, which says it is using rates to encourage more companies to make products in the US, overestimates the ability of US companies to relocate chains of products. supply. "

"Global supply chains are extremely complex," said the working group. "It can take years to find the right partners to meet the right criteria and produce products at the scale and cost required."