The National Retail Federation president and CEO Matthew Shay issued the following statement after President Trump said he will consider tariffs on an additional $200 billion in Chinese goods if China does not yield to U.S. demands:
“This is just what we predicted – a tit-for-tat trade war has erupted and American families are caught in the middle. 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. This reckless escalation is the latest reminder that Congress must step in and exert its authority on trade policy.”
A study conducted earlier this year for NRF and the Consumer Technology Association found that tariffs on $50 billion of Chinese imports would reduce gross domestic product in the U.S. by nearly $3 billion, and lead to the loss of 134,000 jobs in the U.S., with four jobs lost for every job gained. Imposing tariffs on an additional $100 billion of Chinese imports would bring the total impact to a $49 billion reduction in GDP and the loss of 455,000 jobs.