Trump's tariffs are bad news for back-to-school shoppers
President Donald Trump's latest barb in the ongoing trade war with China will hit families hard during one of the most crucial retail periods of the year: back-to-school shopping season.
Trump announced on Twitter that on September 1 the U.S. will implement an additional tariff on 10% on the remaining $300 billion of goods from China. The president went on to say that the new duties would not include the $250 billion of items that have already been tariffed at 25%.
Many in the retail industry have warned the president of the harmful effects raising tariffs will have on American business and the American consumer.
In a statement to Trump, Matt Priest, president & CEO of the Footwear Distributors and Retailers of America (FDRA), said that the group is dismayed by the president's announcement.
“President Trump’s new tariffs should concern every American. Seventy percent of every pair of shoes sold in the U.S. comes from China. Footwear from China is already hit with upwards of 67% duties. President Trump is, in effect, using American families as a hostage in his trade war negotiations. Tariffs are taxes and this move will noticeably raise the cost of shoes at retail and will have a chilling effect on hiring in the footwear industry. ... This is one of the largest tax increases in American history and it is vitally important that we fight this action on behalf of our consumers and our industry.”
Priest told Yahoo Finance that tariffs are far-reaching and will hit Americans’ pocketbooks as children go back to school.
"You gotta think about all the other products, it’s not just footwear, it's disposable income being stretched thin across every single product category that is sold in the United States ... You're gonna have electronics hit ... They'll have duties on apparel, we’ll have duties on paper and books and backpacks ... Everything will have additional duties on it,” he said.
Reggie Wade is a writer for Yahoo Finance. Follow him on Twitter at @ReggieWade.