US President Donald Trump delayed imposing tariffs on some Chinese imports until mid-December to avoid hurting Christmas shopping, but a coalition of more than 150 trade associations is making a last-ditch plea to postpone duties on other goods that take effect from Sunday, saying they come at the worst possible time and that holiday purchases will still be affected.
The Americans for Free Trade coalition sent a letter to Trump asking him to postpone tariffs of 15 per cent starting Sunday on about $112 billion of Chinese goods including apparel, footwear, televisions and even Christmas decorations. It also seeks to stop the duties that begin December 15.
“Price increases will hit shoppers just as they are making their holiday purchases,” the letter said. “Please protect the holiday season and delay these tariffs.”
Trump bowed to pressure from companies earlier this month and postponed until December 15 duties set to take effect from Sunday on toys, phones, laptops and other consumer products among $300-billion in goods targeted for duties so it won’t be relevant to the Christmas shopping season.
Ongoing trade war
But the coalition said 92 per cent of apparel products among the $300-billion targeted for tariffs will take the duty hit from Sunday, as well as almost 70 per cent of home textile products and more than half of footwear.
Trump also announced on August 23 he was increasing the duty rate on the $300 billion goods to 15 per cent from 10 per cent, and to 30 per cent from 25 per cent on tariffs already in place on $250-billion of other goods starting October 1 in an escalating trade war.
The trade group s said that while they understand Trump’s frustration with China and support efforts to crack down on unfair trade practices, they oppose tariffs announced with little warning and can’t easily or quickly move production out of China as the President suggests.
While Trump has said China is paying the tariffs, actually American importers and companies do and the costs are often passed along.
“US consumers are driving the growth of the US economy,” the groups said in their letter. “Let’s ensure consumer confidence remains high and economic prosperity continues for the American families we serve and the American workers we employ every day. A tariff delay is the gift you can give American families this holiday season.”