Big Retail has expressed President Donald Trump's dissatisfaction with America’s mutual tariff approach.
On Wednesday, he unveiled an aggressive mutual tariff initiative, aiming to rectify years of unjust trade policy manipulation with various nations, with the intention of addressing decades of wrongful trade policy practices.
Many believe that, considering Corporate America supported his initial American agenda in January, in hopes of benefiting American workers, they will affirm trade policies that will align more consistently with their trade allies.
Doug McMillion, CEO of Walmart met prior to Trump's inauguration in January, and a Walmart representative stated, “We are prepared to advance our nation.” Numerous American business leaders congratulated Trump on his historic victory last November and attended his inauguration ceremony, and met with the President before his official term started.
In March, Trump met with these CEOs at the Business Roundtable, a nonpartisan economic advocacy group based in DC that includes over 200 CEOs.
Despite the apparent alliance between corporate America and Trump, it has become evident that the National Retail Federation (NRF) no longer endorses his policies.
The NRF announced that Trump’s mutual tariff initiative in a release from its executive vice president of government relations states that increased tariffs will result in higher expenses for American families.
“Duties are paid by US importers and passed on to the end consumer. These taxes are not incurred by foreign suppliers,” stated David French, head of its government affairs, in writing.
Despite frequent assertions from detractors, the Economist of the Federal Reserve and the National Bureau of Economic Research (NBER) found minimal impact on widespread inflation.
John Carney of Breitbart News Economics Editor often refutes the idea that businesses can simply transfer tariff costs to consumers.
The belief that consumers ultimately bear these tariff expenses relies on the erroneous assumption that businesses can effortlessly transfer rising costs. This presumes that businesses are pricing below what consumers are willing to pay. If that were true, the company would miss out on potential profits that have not been accounted for. This scenario contradicts market realities.
In truth, businesses typically charge the maximum price the market allows, accounting for consumer demand, supply, and competition. Imposing tariffs on imports means that a sudden increase in price won’t provide businesses with additional leeway.
“Big Retail is merely a symbol of America. After initially appearing fully supportive of President Trump's agenda, now, when it truly matters, corporate leadership in companies like Walmart is shifting their stance.
Sean Moran is a policy reporter for Breitbart News. Follow him at @seanmoran3.
