"China's taxes are not payable directly by US companies" to Trump. "The tariffs and uncertainties surrounding these trade negotiations have created turmoil in the markets, threatening our historical economic growth."
Treasury Secretary Steven Mnuchin said last month at a House Committee hearing that he would not expect there will be "significant costs" for consumers. "I do not necessarily agree with that," said Mnuchin when pressed by Democrat Representative Cindy Axne of Iowa on whether prices of consumer goods would be higher
However, the companies cited a study in their letter to the White House that found 25% tariffs on an additional $ 300 billion worth of Chinese goods would add more than $ 2,000 in costs for the average American family of four
The cost to consumers would not always go up by 25% if tariffs are imposed. Some retailers may decide to absorb some of the cost of the tariff, negotiated with the exporting company for a lower price or move production out of China
"The ability of US retailers to shift sourcing from China to other suppliers is limited and could take years to complete , "the Trade Partnership said in the report. "Even after possible changes in sourcing, the proposed tariffs would have a significant negative impact on American consumers."
Prices for shoes would rise by 8% for consumers, while toy prices would rise by 16%. Adidas ( and ] Under Armor ( ))
New tariffs would hurt Trump's voter base, said David French, senior vice president at the National Retail Federation, who helped spearhead the letter
"The president's base is among the most economically vulnerable in the country," he said. "
– CNN Business' Katie Lobosco has contributed to this report
This is exactly what people can not afford to pay for hundreds or thousands of dollars more for everyday goods.