As the Trump administration enacts its plan for global trade wars, the effects are starting to hit home, and companies in Republican states are feeling the pinch. Now, red state mega corporation Walmart is pushing back at the Trump administration to save Christmas ... or Christmas lights at least.
Christmas lights are just one item on a huge list of products that will face price increases in the retail marketplace, due to the Trump administration on Chinese imports, since those tariffs do not get paid by the Chinese but by American retailers and consumers. Other retailers like Target, Ace Hardware, and Joann's fabrics have also petitioned the administration to back off the import tax plan out of concern about the financial hit that they will face.
However, Walmart in particular will face a significant impact come this season. In addition to Christmas lights, the list of taxed items also includes such things as shampoo, dog food, handbags, vacuum cleaners, bicycles and more. The items make up a large part of the chain's consumer staples, and the timing comes just as the stores are preparing for the holiday seasons.
It is estimated that around 10 percent of Walmart's 500 Billion dollars in sales from last year come from Chinese imports or investments, so this is no small matter for this American company in Republican states to overcome.
Walmart explained in it's letter of the dire effects that can be expected, if the administration follows through on its planned import sanctions and warned it is bad news for everyone, saying, "Either consumers will pay more, suppliers will receive less, retail margins will be lower, or consumers will buy fewer products.
"Making that specific to nationality, that is saying that AMERICAN consumers will pay more, AMERICAN suppliers will receive less, retail margins of AMERICAN retailers will be lower, and AMERICAN buyers will get less.
Products that are being taxed by the Trump administration include not only Chinese imports of finished products, but they include PARTS used by American companies for completion of their American made goods, as well. Thus, the full spectrum of the impact on retailers like Walmart and Target have yet to be seen.
The Trump administration is showing little flexibility or response to calls from its voting base, so far. With the holidays already upon the retailers, it may already be too late to prevent the increased costs associated with this trade war from having their impact, unless Walmart is able to win its battle to save Christmas from the White House trade policies.