Some of the world's biggest footwear firms are urging Donald Trump to end the US trade war with China, warning of a "catastrophic" effect on consumers.
1
Giants' letter
A letter signed by 173 companies, including Nike and Adidas, says the president's decision to raise import tariffs will affect the working class.
They also warn that higher levies threaten the future of some businesses.
Mr. Trump says that the trade deficit with China hurts the US economy.
2
Tariffs
The footwear companies that signed the letter, including Clarks, Dr. Martens, and Converse, say that while the average US tariff on footwear is 11.3%, in some cases it can reach as high as 67.5%.
"Adding a 25% tax increase on top of these tariffs would mean some working American families could pay a nearly 100% duty on their shoes," the companies wrote.
"This is unfathomable."
"It is time to bring this trade war to an end," the firms urged.
When he raised tariffs earlier this month, Mr. Trump told companies that they could reduce costs by shifting production to the US.
However, the shoemakers and retailers say that while they have been moving their sourcing away from China: "Footwear is a very capital-intensive industry, with years of planning required to make sourcing decisions, and companies cannot simply move factories to adjust to these changes."
3
Retaliation fears
A survey by AmCham found that slightly more than 40% of its members had relocated, or were considering moving, outside of China because of tariffs.
The group represents more than 900 US companies working in China.
Plane manufacturer Boeing, pharmaceuticals firm Pfizer and soft drink giant Coca-Cola are among the US companies AmCham represents in China.
Boeing's president of China, John Bruns, said he was "nervous" about the "challenging environment" caused by the tit-for-tat tariff war.
4
What's next?
Still, Beijing signaled some willingness to work with Washington to solve their trade dispute. No discussions have been scheduled since the last round of talks ended on 10 May.
"China remains ready to continue our talks with our American colleagues to reach a conclusion. Our door is still open," China's ambassador to the US Cui Tiankai said on Fox News.
The leaders of the US and China are also set to meet again at the G20 summit in Japan next month.
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SOURCE |BBC
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