CNN: New Tariffs on China Bad News For US Consumers
President Donald Trump’s newly proposed tariffs on China would be particularly bad news for US consumers, reported CNN in its analysis of the American new trade measures. Investors sold off well-known retail and tech stocks in response, because they would get hit hardest by the additional tariffs.
At the same time, global markets are rocked by escalating trade fights. Markets around the world fell in response, while government and business leaders decried the burden it would put on companies and consumers.
Japan added to the global tension by removing South Korea from a list of preferred trading partners, threatening supply chains for the tech industry.
All three US indexes closed down significantly for the week. For the Nasdaq it was the worst week of the year.
“Tariffs are taxes on American consumers,” said Rick Helfenbein, president and CEO of the American Apparel & Footwear Association. “The president’s decision to proceed with adding these additional costs for hard-working American families is truly shocking”, CNN wrote.
Trump announced an additional 10 percent tariff on 300 billion’s dollar worth of Chinese-made products entering the United States. That includes things like smartphones, toys, footwear and some other consumer goods. Retailers were not pleased.
“American families shouldn’t be a pawn in this trade war,” said Hun Quach, vice president of international trade for the Retail Industry Leaders Association. “Today’s announcement only moves us closer to consumers bearing the brunt of the pain”, according to CNN.
The National Retail Federation said it is disappointed the administration is doubling down on tariffs.
“These additional tariffs will only threaten US jobs and raise costs for American families on everyday goods,” said David French, senior vice president for government relations at the NRF. “The tariffs imposed over the past year haven’t worked, and there’s no evidence another tax increase on American businesses and consumers will yield new results.”