Retailers: Stop ‘reckless escalation’ of China tariffs

A tit-for-tat trade war with China would “sap the energy out of the strong U.S. economy,” according to the National Retail Federation.    The National Retail Federation is calling on Congress to intervene in the brewing trade war between the United States and China.
   President Donald Trump earlier this week announced that he has directed U.S. Trade Representative Robert Lighthizer to identify $200 billion worth of Chinese goods that could be subjected to additional tariffs of 10 percent. The latest move from the Trump administration came shortly after the Chinese government said it would retaliate against U.S. tariffs on $50 billion worth of Chinese goods, the first phase of which is set to take effect July 6.
   “This is just what we predicted — a tit-for-tat trade war has erupted and American families are caught in the middle,” said Matthew Shay, president and CEO of the National Retail Federation. “Higher prices for everyday essentials and lost jobs threaten to sap the energy out of the strong U.S. economy just as most Americans are starting to enjoy the benefits of historic tax reform.”
   Shay cited a study conducted earlier this year for NRF and the Consumer Technology Association that found the initial round of tariffs on $50 billion in Chinese imports would reduce U.S. gross domestic product by nearly $3 billion and lead to the loss of 134,000 American jobs, with four jobs lost for every job gained.
   Imposing tariffs on an additional $100 billion of Chinese imports would bring the total impact on U.S. GDP to $49 billion and result in the loss of 455,000 jobs, according to the study.
   “This reckless escalation is the latest reminder that Congress must step in and exert its authority on trade policy,” said Shay.