Retail Magnates Strive To "Shoot" To Raise Import Tariffs

According to data from best buy retailer, best buy, the import tax rate of 20% is expected to evaporate the net income of $1 billion in best buy year, or make it buy a $2 billion loss.

The chief executives of several of the largest retail companies in the United States are expected to gather in Washington this week to oppose tariffs on imported goods.

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The "big guys" include the owners of Taghit department stores, auto strip companies and best buy companies.

13 days ago, Reuters quoted 4 people as saying that they planned to meet with several senators on with Kevin Brady, chairman of the house raising Committee.

The report did not confirm all the attendance list.

This will be the first time that retail giants have assembled in Washington, and collective efforts have been made to "shoot" to raise import tariffs.

Their gathering is particularly urgent because President Donald Trump plans to unveiled a tax reform plan within weeks.

Brady and speaker of the house of Representatives

In the house of Representatives, the relevant proposals were moved to reduce the corporate income tax rate from 35% to 20%, exempting income tax from export earnings and imposing a 20% tariff on imported goods.

However, American enterprises are heavily dependent on imports.

No matter retailers, automobile manufacturers and refineries are all at a loss over the direction of Trump administration's tax reform, it is said that the impact of higher import tariffs will offset the possible benefits of downgrading corporate tax rates.

At the same time, the US retail Leadership Association is leading the industry to oppose the proposal of border tax adjustments by House Republicans. It has formed an opposition coalition consisting of more than 120 enterprises and trade organizations, including WAL-MART department store.

The opposition of retailers to higher import taxes is particularly fierce. If the tax rate is raised to 20%, the price will be passed on to consumers and eroded the profits of enterprises.

Almost all clothing, shoes and electronic products in the United States depend on imports, and coffee and palm oil products also rely on imports.

However,

Several big exporters also formed alliances to support higher import tariffs.

These include Boeing, Ge Corp and Pfizer Inc.

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From the position of Trump and his economic team, it is easy to see that the purpose of the contraction of free trade is nothing but to keep domestic jobs and revitalize the declining "made in the United States".

But the fact is not quite so. In the United States, a large number of export dependent employment will be lost because of trade protectionism.

According to the statistics of the Washington Post, in the eastern part of the United States, a large number of cities which are heavily dependent on exports are located in the eastern part of the United States.

For example, New York, Houston, Losangeles and San Francisco have a lot of work related to exports; claiming that the rust belt that has lost much of their work due to free trade (around the five Great Lakes areas) is actually gathering a large number of cities that are highly dependent on exports, including Chicago and Detroit, which are famous for its automobile industry.

In Losangeles, there are 3 million 800 thousand jobs related to exports, and exports of goods and services contributed 1 trillion and 200 billion US dollars GDP.

At the same time, the main export commodities in various regions, such as the five Great Lakes, are exported mainly by automobiles and pportation equipment; Iowa exports agricultural products; Houston city group mainly exports oil and chemical industry; Portland exports more electronic and computer equipment; the east coast also has many exports of medicines, aviation equipment and tires.

Economists predict that adopting trade protectionism to bring employment back to the United States will bring unexpected negative consequences.

For example, high tariffs on imported goods will increase the cost of parts and equipment of American manufacturers, thereby reducing commodity profits.

More seriously, trade wars will lead to a full rise in commodity prices.

For more information, please pay attention to the world clothing shoes and hats and Internet cafes.