- Tweeter
republish
Two days before the opening of the G20, the American industry holds its breath. From distribution giant Walmart to Nike and Adidas to Harley Davidson motorcycles, many are worried about escalating taxes between China and the United States. A short overview of the voices that have been rising since the beginning of the trade war.
On June 25, the US logistics giant FedEx sued the US administration. It is the last strong action of a player of the American economy dissatisfied with the commercial war led by Donald Trump. This lawsuit comes a month after the company found itself in the media fires. In late May, in response to attacks on Huawei, China has indeed accused FedEx of having diverted to the United States four of its packages destined for the company's headquarters in China . Since then, the US company has been threatened with being blacklisted as "unreliable" by the US, but is also facing US export bans.
The international transport company refuses to become a protagonist of this trade war and to be held responsible for parcels whose content it ignores and which could potentially violate the ban on exporting to certain Chinese groups . FedEx says it's an impossible task to " control the contents of millions of parcels ".
Harley-Davidson takes action and turns to China
Harley-Davidson, the name of the brand alone evokes the United States, commercial success and the "American way of life". Yet the century-old manufacturer of motorcycles is now also in the sights of Donald Trump. Since the head of the White House has decided an all-out rise in customs barriers, motorcycles are in the foreground and are an unfortunate symbol.
After the first wave of steel and aluminum tax increases in March 2018, China responded and taxed 25% of the bikers' favorite motorcycles last August. Europe has done even stronger with a tax of 31%. Faced with these double-digit rates, the Milwaukee motorcycle manufacturer (whose production is down) has decided to relocate part of its production in Asia, and to close its Kansas City plant. Since then, the cloth burns between Donald Trump and Harley. As usual, it's through a series of tweets that Donald Trump reacted to his decisions: " Many Harley owners are preparing to boycott the brand if they relocate. Great ! " A Harley-Davidson should never be built in another country, ever ! ".
Nearly a year later, and while the trade war seems far from subsiding, the manufacturer is stepping up its movement towards Asia, a promising market with a 28% increase in sales in China in one year. It is therefore a new small displacement that will come out of Chinese factories from 2020, a way for Harley to target the Chinese elite, but also a more modest clientele, and to tickle once again the passage of the ego of Donald Trump , who had self-proclaimed in a tweet " tariff man ", "supertaxe".
.... I am a Tariff Man. When people or countries come to the top of the great wealth of our nation, I want to pay for the privilege of doing so. It will always be the best way to max out our economic power. We are right now taking in $ billions in Tariffs. MAKE AMERICA RICH AGAIN
Donald J. Trump (@realDonaldTrump) December 4, 2018Adidas, Nike and others take their pen
"If the Americans thought with their feet, they would be opposed to the trade war": here is the message that the shoe industry has sent to President Trump via a letter signed by more than 180 manufacturers including Nike, Adidas and Puma. 62% of American sneakers and shoes are indeed made in China and a 25% increase in the taxation of Chinese manufactured goods would have a direct impact on Americans. According to Footwear Distributors and Retailers of America, the taxes consumers would pay could be $ 7 billion more. For example, a pair of canvas sneakers would see its price increase from $ 49.99 to $ 65.57.
The mass market mediates the question
Walmart, the largest private sector employer in the US, has joined forces with some of its competitors and 600 other US agribusiness companies, including technology, in a national campaign called " Tariffs Hurt the Heartland ". , " Taxes weaken the homeland ". A campaign that takes a stand in the battle of numbers.
Supported by a study by the Trade Partnership consulting firm, these groups ensure that US consumers will become the first victims of the trade war. According to them, more than two million American jobs would be lost if the additional tariffs of 25% on 300 billion Chinese products were applied, and that's a point of the American GDP that would leave at the same time.
With these hard-hitting figures, the possible state-by-state impact , but also the calculation of the average household cost ($ 2,400 per year for a family of four), this group of industrialists hopes to win the battle of opinion. He also reminds President Trump who dreams of a "Made in America" boom that it is often impossible to quickly repatriate Chinese factories to the United States.