Walmart has written a warning in a letter to U.S. Trade Representative Robert Lighthizer that the company may have to raise prices after the Trump administration went ahead with its plan to expand tariffs on Chinese imports.
CNN Money reported that two weeks before the most recent tariffs were placed on Chinese goods, Walmart made a plea in a letter to Lighthizer to stop placing tariffs on products like Christmas lights, shampoo, dog food, backpacks, vacuum cleaners and bicycles, among other items.
“The immediate impact will be to raise prices on consumers and tax American business and manufacturers,” Walmart said in the letter.
Even though Walmart, a retail giant, issued the warning, the Trump administration went forward on Monday. They issued 10 percent tariffs on the mentioned products and also put $200 billion worth of tariffs on other imports from China.
“Either consumers will pay more, suppliers will receive less, retail margins will be lower, or consumers will buy fewer products or forego purchases altogether,” Walmart warned in the letter.
According to CNN Money, 10 percent of the Walmart’s sales last year were estimated to have been linked to Chinese imports or Walmart’s investments in Chinese businesses.
Walmart controls 10 percent of the U.S. retail market. They also said in the letter that tariffs on imported bicycle parts would have negative effects on families.
“Tariffs on these parts would make U.S. manufacturing uncompetitive and drive up the price of bicycles for children and families,” Walmart told Lighthizer.
The National Retail Federation also issued a warning in its own letter to Lighthizer. They said that the Trump administration, which says it is using tariffs to press for more companies to manufacture goods in the U.S., is overestimating the ability of U.S. companies “to shift supply chains out of China.”
“Global supply chains are extremely complex,” the trade group said. “It can take years to find the right partners who can meet the proper criteria and produce products at the scale and cost that is needed.”