Businesses are divided over Trump's plan to impose sweeping tariffs. Some companies welcome the protection from foreign competition, while others worry about rising costs and retaliation.Peter Elitzer, who runs a chain of discount clothing stores called Label Shopper, worries that tariffs will force him to raise prices, turning off already skittish shoppers.Some are scrambling to avoid the potential import taxes or preparing to pass the cost on to their customers.
Starting around 2010, McClelland's company and others the industry began to face increased competition from China. They fought back and won anti-dumping tariffs on Chinese aluminum products, but the import threat soon metastasized. "They're selling at prices we can't compete with," McClelland says."It's going to shut down our industry if we don't do something."
"I don't think the American consumer understands what's at stake here," says Djavaheri, whose company, Yedi Houseware Appliances, is based in Los Angeles. He says even a 10% tariff would be painful for the customers who shop at his discount clothing stores. Bargain-hunters who frequent Elitzer's Label Shopper stores on the East Coast and in the Midwest are already cautious about spending money.