- Writer, Natalie Sherman
- Name the person who wrote the story, BBC News
When handbag designer Sherrill Mosee learned that the nearly 2,700 handbags and purses she ordered from a company she works with in China wouldn’t be on the same plane this fall, she wasn’t worried at first. she didn’t.
Later, Donald Trump was re-elected as the President of the United States.
“I wish we had to import these,” said Ms Mosee, founder of MinkeeBlue, a small manufacturer in Philadelphia. Her company is one of thousands across the country that are preparing to see the impact of Trump’s promises to impose tougher tariffs on all goods coming into the country.
The threat gained attention this week, as Trump said he would take action on his first day after being sworn in.
He has vowed to take measures — including imposing border tariffs — on goods from China, Mexico and Canada, America’s three biggest trading partners.
In a message published on social media, Donald Trump said that he plans to impose a 25 percent tariff on Canadian and Mexican products and an additional 10 percent tariff on Chinese products.
His tweet comes after his campaign pledge to impose tariffs on US imports of at least 10 percent, and an additional 60 percent or more on Chinese goods – many of which are facing debt repayments. taxes imposed on them during his first term.
Some experts say that Trump’s policies may be less effective than the promises, and that his words should be understood as a som-pat in the big promises he made related to immigrants and drugs.
Regardless of how effective the policy is, the threat has gained recognition, as companies like MinkeeBlue have begun to consider changing shipping methods and restructuring contracts and taking other measures to keep the impact at bay.
Chris Caton, managing director of strategy and analytics at retail giant Prologis, said his company had seen a surge in activity “on the sidelines” as businesses fear higher taxes after starting to look for solutions.
“There’s an impact on the economy, whether it’s booming or busting,” said Wendy Edelberg, director of the Hamilton Economic Center.
In the days after the election, footwear giant Steve Madden told investors that he is continuing with plans to shift factories outside of China, with the aim of reducing imports from the country in the next half year.
Hardware and home appliance manufacturer Stanley Black & Decker said it has begun discussions with its customers about rising prices linked to higher taxes.
The leaders of Walmart are also discussing a similar plan.
Even if Trump’s policies remain in place, Ms Edelberg said the public could see higher prices, as well as shortages of some goods, while stockpiling has left some businesses reeling.
“As some companies are uncertain about what will happen, this can also hinder economic growth in the coming months,” she said.
Original image, Getty Images
Trump and his advisers say the tax increase will help revive American companies and create more jobs.
However, economists say that this will happen when some companies will lose.
Martin Pochtaruk, CEO of Canadian solar integrator Heliene, said that in 2018, his company had to close its operations as a result of increased tariffs that Trump imposed on foreign solar companies during his first term in office.
Now the company manufactures all its products in America, where it employs 400 people.
Many of the owners of the company have opened stores in the United States, as a result of their encouragement by the country’s government under the renewable energy program developed by President Biden.
Mr. Pochtaruk’s company has learned a lesson from the past, which made him change his contract structure, so that his customers know what changes will be made on taxes, as happened during the covid epidemic.
However, despite this protection, the possibility of renewed trade disputes between countries with good relations such as Canada and the United States is causing more concern, said Mr. Pochtaruk.
Original image, Getty Images
Economists say the tax, which has been used for decades on clothing and footwear companies, has shown that they can protect other companies, hoping to boost jobs, while raising the prices of the products they control.
The U.S. Trade Regulatory Commission (NRF) has warned that the increased tariffs and tariffs proposed by the Trump campaign will cost companies as much as $46 billion in lost revenue and an additional $78 billion annually for apparel companies and toys, furniture, household goods, footwear and travel products.
On Monday, Trump’s move on Mexico – the largest importer of US citrus and fruit under a long-standing free trade agreement – sparked controversy, particularly over the promise of higher tariffs and other promises to lower prices. goods for Americans.
As small businesses face increased competition, Ms Mosee said she is not considering increasing the price of her company’s bags, which she sells for $180 each.
She is now thinking of expanding her business by looking for customers from countries like Cambodia and India.
A decade after starting her own business, Ms Mosee – a former engineer – says she may need to find new business partners if her small two-person factory is to survive after the tax changes. expected to happen after Trump’s inauguration for the second time.
“It’s a difficult thing,” she said. “It will be very difficult.”
