On June 13, 2019, most of the American firms warned the US president that he should take back the tariff on Chinese goods. Spokespersons of US firms also stated that the present move by the American government can cause severe harm to the economy and it will also increase the unemployment rate.
Some of the major US companies including Gap, Walmart, Target, Foot Locker, Costco etc. wrote a letter to Donald Trump. In the letter, companies have urged Trump that he should put an end to the ongoing Trade War.
As per the letter written by the companies it was clearly mentioned that the present trade war will harm families and US trade. The letter also stated that the Trade War will lead both the countries towards an economic set back.
Back in the month of May 2019, US government raised the tariff rate to 25% which was initially at 10%. Tariff amount was imposed basically on air vacuum, luggage, hand bags, bicycles etc. Moreover, Donald Trump also stated that he may further increase the tariff on several other Chinese goods viz. television, toys, shoes, clothes etc.
Companies also wrote that the present tariff rate can create disruption in the consumer market. While speaking to the press, Richard Galanti stated that due to present situation there is a possibility that product prices will increase and the country might have to face inflation.
Contrary to the statements made by various businessmen, Steven Mnuchin stated that he doesn’t believe that consumers might have to pay the ultimate price. In the letter to President Trump, companies have stated that how present Tariff condition will cause an additional burden of $2,000 on an American family. In one of his exclusive interviews David French stated that the present Trade War might hurt Donald Trump’s voter base.