Published: Fri, September 21, 2018

Walmart warns President Trump trade war with China could force prices up

Walmart warns President Trump trade war with China could force prices up

Walmart, the biggest US retailer, warned the Trump administration the newest round of tariffs on imported Chinese goods could prompt it to raise prices on products from shampoo to bicycles to food. "The immediate impact will be to raise prices on consumers and tax American business and manufacturers".

Next week, the United States will place a ten-percent tariff on 200 billion dollars worth of goods from China. That penalty will rise to 25 percent beginning January 1.

According to reports, China could lower the tariffs as early as next month.

Walmart said the tariff would impact prices of everything from food products to beverages and personal care items. "Furthermore, none of these items are related to intellectual property or trade secrets and it is hard to see how taxing these goods will resolve these more complex trade challenges".

Chinese billionaire and Alibaba founder Jack Ma said a pledge to create 1 million new jobs in the United States won't happen, thanks to President Donald Trump's tough stance on trade with Beijing.

Beijing is reportedly looking at lowering import tariffs on global trading partners, which could include the U.S.

The trade war has started to hit Chinese cities and provinces, especially those that depend on US order books.

Walmart confirmed it sent the letter and in a statement to Reuters urged the two countries to find solutions.

While the direct economic impact of the dispute on China has so far been limited, the trade tensions could rapidly push Chinese exporters to switch away from the USA market, a former chief of China's central bank said on Wednesday.

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