Retailers Call Trump Tariffs ‘self-inflicted Wound on the Nation’s Economy’

Retailers are worried about an impending trade war that will disrupt their carefully crafted supply chains for consumer goods.After praising President Trump for tax cuts, the industry's largest trade group is criticizing the increase in tariffs for steel and aluminum that Trump signed on Thursday afternoon."A tariff is a tax, plain and simple. In this case, it's an unnecessary tax on every American family and a self-inflicted wound on the nation's economy," said National Retail Federation CEO Matthew Shay in a statement released Thursday.Consumer spending makes up more than two-thirds of the U.S. economy and much of that is spent in stores and online. Retail is the nation's largest private-sector employer supporting one in four U.S. jobs , according to the federation. "Consumers are just beginning to see more money in their paychecks following tax reform, but those gains will soon be offset by higher prices for products ranging from canned goods to cars to electronics," he said. The industry is concerned that the administration wants "to ignite a trade war" that will create a swath of companies on the losing end of his policy."On top of steel and aluminum tariffs, retailers are troubled by the direction of the ongoing NAFTA negotiations and the threat of additional tariffs on consumer goods from China," Shay said.In a play on Trump's "make America great again" slogan, Shay said, "The true greatness of America cannot be realized when we build walls blocking the free flow of commerce in today's global economy."Twitter: @MariaHalkias  Continue reading...