Corporate executives were taking a wait-and-see approach to President-elect Donald Trump’s vow to impose heavy tariffs on imports when he takes office in January, but many have raised concerns about the effect such levies will have on inflation.
Trump has vowed to make tariffs, which are a fraction of U.S. tax collections, central to his economic agenda. Executives have been increasingly fielding questions on the subject, with many noting ongoing efforts to continue to diversify their supply chains, particularly away from China, Trump’s top target.
Trump has floated the idea of 60 per cent tariffs on China, the world’s largest exporter, and universal tariffs of 10 per cent or more, which he says is necessary to eliminate the U.S. trade deficit. The sectors that account for the most imports to the United States include electronic products, transportation equipment, chemicals and minerals, according to the U.S. International Trade Commission.
Tariffs could raise prices on clothing, toys, furniture, appliances, footwear, and travel goods, particularly items where China is a major supplier, according to the National Retail Federation, a U.S. trade group of which Walmart’s U.S. head is the chair.