Walmart and other retailers team up to fight Trump’s border tax
A group of more than 120 retailers and trade associations, including Walmart, Target and Best Buy, launched a coalition on 1 February 2017. The coalition, called “Americans for Affordable Products”, is pushing back against the proposed “Border-Adjustment Tax” (BAT) which would subject imports to US taxes. The coalition fears it will increase the cost of clothing, food, medicine, gas, and other essential items that Americans rely on.
The BAT is a part of the Republican tax reform proposal which would impose a 20 percent levy on imported goods. The tax, which aims in part to finance President Trump’s proposed wall along the Mexican border, could be particularly painful for retailers. Some 97 percent of all clothing and footwear sold in the US, and more than 90 percent of electronics, are imported. Items like sugar, coffee, beer and many foods could also be hit, it was reported.
It was pointed out that retailers cannot easily or quickly switch to domestic sources because they don’t exist for many goods bought by American consumers. It’s been estimated that if passed, the BAT will cost American households up to USD 1,700 a year.
Large retailers have been muted on the issue, preferring not to take on the president directly, mindful of his readiness to use his Twitter account to pressure US companies to bend to his will. Instead, they let the coalition speak for them while stepping up their lobbying efforts behind the scenes in Washington.
