As part of his ongoing spat with America’s trading partners, President Trump has proposed levying a 20% “border tax” on corporations that import their goods from Mexico. The pronouncement has been enough to mobilize the leaders of some very prominent retailers, many of whom have traveled to Washington D.C. in recent days to argue against the hastily conceived proposal.
"A large number of CEOs” have galvanized to express concerns about a potential import tariff driving up prices for everyday consumers, David French, senior vice president for government relations at the National Retail Federation, told CNBC. Additionally, the Retail Industry Leaders Association (RILA), launched an effort on Wednesday to contest Trump’s measure. Called Americans for Affordable Products, the RILA group consists of retailers including J.C. Penny, Walmart, Nike, Target, Home Depot, and more.
Many companies rely on goods manufactured in Mexico to provide cheaper products for American consumers.Trump floated the idea of an import tax as a way subsidize the construction of his Mexican border wall, originally stating that “Mexico will pay" for it, but that idea has been scrapped, citing the defiance of Mexican leaders. The crux of the massive construction project will fall squarely on the shoulders of American taxpayers, retail industry experts fear.