Low-Income Consumers Will Bear the Brunt of More Tariffs: Munchin Meets Walmart
Trump's next round of tariffs on China will hit things like diapers, strollers, infant formula, and children's products in general.
To alleviate concerns, Mnuchin says he’s talked to Walmart.
The U.S. recently raised the tariffs it had applied to roughly $200 billion of Chinese goods to 25% from 10% and has proposed a 25% tariff on the remaining $300 billion of Chinese goods not yet subject to those levies.
Responding to Rep. Ben McAdams, a Utah Democrat who pointed out that his state leads the nation in children per household, Mnuchin replied that he’s talked on the phone with Walmart’s — Brett Biggs, though Mnuchin didn’t name him — to find out what things the company can source from other areas and what they can’t.
“We haven’t made any decisions yet but we will be especially sensitive to the consumer items,” Mnuchin said. The Treasury secretary said there will an exclusion process if there are any additional tariffs and said a decision on those additional tariffs will be made in 30 to 45 days.
From the February 2018 low until May of 2019, the Yuan fell 9.6% vs the US dollar. That mitigated much of Trump's 10% tariffs on Chinese goods.
The next 25% will be much more painful, and it will fall directly on US consumers with lower-income groups suffering the most pain.
Not to Worry
Trump loves collecting big tariffs.
Tax Hike on the Poor
China produces 80% of the world's rare earth elements. They are used in weapons, cell phones, hybrid cars, and magnets.
And as Trump ponders still more tariffs, in retaliatory trade hardball, China Threatens to Cut Off US Supply of Rare Earth Elements.
Who Will Win the Trade War?
Some say China, others say Trump.
Steve Bannon, former White House chief strategist, says the result will be win-win.
The correct answer is nobody, click for discussion.
Mike "Mish" Shedlock