Walmart warned of rising prices due to new duties against China: the cost of which goods will rise

Walmart, the largest retailer in the United States, warned the Donald Trump administration that it would be forced to raise prices for its products due to a new round of duties on imported Chinese goods. Writes CBS News, prices will be raised on a variety of products: from shampoo to bicycles and food.

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“This round of tariffs could impact a significant number of consumer products that are not easily replaced. The immediate effect will be higher prices for consumers and higher taxes for American businesses,” Walmart senior director of global affairs Sarah F. Thorne wrote in a letter to the U.S. Trade Representative.

This week, the Trump administration has intensified a trade war, adding 10% duty on Chinese goods, totaling $ 200 billion. From 1 in January of 2019, these duties will increase to 25%.

For Walmart and similar companies, this means that taxes on goods imported from China will increase, and potential profits will decrease if companies do not pass the cost on to consumers.

In a letter, Walmart representatives point out that the following goods may become more expensive: fish, vegetables, nuts, grain, flour, personal care products, shampoo, makeup products, suitcases and bags, bicycles and motorcycles, leather hats, furniture, lighting and mirrors, Christmas lights, monitors, paper tablecloths, napkins, plates and cups, dog leashes, air conditioners, refrigerators, vacuum cleaners and calculators.

“Walmart and our suppliers will pay the cost of increased tariffs, which are taxes levied on products when they are imported at the border. As a result, either consumers will pay more, suppliers will receive less, retail margins will be lower, or consumers will buy less or stop shopping altogether. “Additionally, none of the above concerns intellectual property or trade secrets, so it is difficult to see how taxing these items could help resolve more complex trade issues,” a Walmart spokesperson wrote.

The company explains that they wrote a letter because of their concerns about how the new rules will affect American suppliers, consumers and manufacturers and urge both countries to find ways to ease trade tensions that will give more opportunities for US exports and benefit both countries.

Recall 18 September, Trump announced the introduction of new package of fees for Chinese goods totaling $ 200 billion. The government in Beijing promptly introduced 60 billion-dollar return duties. Trump warned that if China responds with mirror measures, the United States will introduce a third package of duties on the remaining goods in the amount of $ 267 billion. Since the beginning of July, the two largest economies in the world have already imposed duties on each other for a total of $ 100 billion. The United States accuses China of protectionism, unfair subsidies and theft of technology. China denies this.

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