Advertisement Walmart: Tariffs would force price hike of 10% - 25% Share Shares Copy Link Copy

Walmart told the federal government that proposed tariffs on China would force it to increase prices of 10% - 25% on a range of consumer products.The United States is scheduled to slap tariffs on $200 billion in Chinese imports Monday, adding to the more than $50 billion worth that already face U.S. import taxes. China has vowed to counterpunch with tariffs on $60 billion in U.S. goods.Walmart submitted a letter to the Officer of United States Trade Representative on September 6, 2018."Should the tariffs go into effect, Walmart customers will face cost increases for essential items like car seats, cribs, backpacks, hats, pet products and bicycles," according to the letter. "For lower-income families, a 25% tax on these items would be a serious burden on household finances."Walmart sent a statement to 40/29 News after we reached out for comment."We filed comments relating to the 301 proposed tariffs because we are concerned about the impact on U.S. suppliers, consumers and manufacturers, as well as families around the world," the statement read. "We encourage the two countries to find near-term solutions to ease trade tensions that will allow more opportunities for U.S. exports and benefit families in both countries."The White House alleges that Beijing steals trade secrets and forces U.S. companies to hand over technology in return to access to the Chinese market.Some economists and trade analysts suspect that Trump has bigger goals than just getting China to change its aggressive high-tech industrial policies. The massive tariffs are raising costs - and uncertainty - for companies that rely on China for materials and components. Trump may be "trying to force U.S. companies to change their supply chains and reduce their reliance on China," said Robert Holleyman, a partner at the Crowell & Moring law firm and a former deputy U.S. trade representative.Walmart's letter cited challenges with changing its supply chain.The letter said products it buys through its current supply chain have already passed safety requirements made by the Consumer Product Safety Commission and the National Highway Transportation Safety Administration. A change in supplers would require new testing and certification.Increased costs could also lead families to buy secondhand car seats or other baby products, sacrificing new safety features, according to the letter.Changing supply chains would also cost Walmart time and money, according to the letter.The letter also complains about the possible impact on retaliatory tariffs on U.S. exporters.Walmart China sells U.S. pork, beef, cherries, nuts, wine, apples, cheese and milk. American producers would have trouble selling to overseas consumers under higher duties imposed in retaliation for American tariffs, Walmart says.(Significant portions of this article are sourced from the Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)