Business groups on Tuesday said President TrumpDonald John TrumpWhy Republicans should think twice about increasing presidential power The opioid crisis is the challenge of this generation Flynn, Papadopoulos to speak at event preparing ‘social media warriors’ for ‘digital civil war’ MORE‘s decision to postpone and exempt some consumer goods scheduled for tariffs did not go far enough, and urged him to take additional steps to wind down the trade war with China.
The White House trade office announced Tuesday morning that the administration would delay tariffs on certain consumer goods from Sept. 1 to Dec. 15, while also removing items from the list targeting Chinese products.
“We are pleased the administration is delaying some tariffs ahead of the holiday season and acknowledging the impact on American consumers,” said David French, head of government relations for the National Retail Federation. “Still, uncertainty for U.S. businesses continues, and tariffs taking effect September 1 will result in higher costs for American families and slow the U.S. economy.”
Trump said earlier this month that starting Sept. 1 he would impose a 10 percent tariff on virtually all imports from China that he had not already hit with import taxes. The list of $300 billion worth of imports included consumer goods for the first time.
Markets tanked from record highs in July over the news, and Wall Street economists began warning that a recession was becoming more likely amid increased trade tensions.
Trump’s decision to exempt certain consumer products from the tariffs and delay others until mid-December will let U.S. companies breathe a brief sigh of relief, but business groups said it was only a small step.
The U.S. Chamber of Commerce, the country’s largest business lobby, said the news was “welcome,” but urged a comprehensive solution to roll back a separate 25 percent tariff on $250 billion of Chinese imports.
“Now, it’s more important than ever that the two sides return to the negotiating table and recommit to achieving progress towards a comprehensive, enforceable agreement,” said Neil Bradley, the Chamber’s chief policy officer.
Other groups said much damage has already been done with the trade war between the world’s two largest economies, which began in July 2018.
“Americans are at less risk of economic harm today than they were yesterday, but not as well off as if the tariffs had never been threatened,” said Tim Phillips, president of Americans for Prosperity, a Koch-backed group that promotes free trade.
“It’s time to give Americans a real Christmas present. End the trade war,” he added, referencing the slew of consumer goods such as cellphones, video game consoles and laptops that will exempt from tariffs heading into the holiday shopping season.
Trump said Tuesday that Chinese officials had a phone call with U.S. Trade Representative Robert LighthizerRobert (Bob) Emmet LighthizerOn The Money: Economy adds 164K jobs in July | Trump signs two-year budget deal, but border showdown looms | US, EU strike deal on beef exports Chinese, US negotiators fine-tuning details of trade agreement: report The Trump economy keeps roaring ahead MORE and Treasury Secretary Steven MnuchinSteven Terner MnuchinBusiness groups to Trump: Tariff delay isn’t enough The road from Jerusalem to Riyadh still runs through Ramallah On The Money: Trump blames Fed, not China, for economic woes | Wild week on Wall Street | Stocks recover after morning plunge | Democrats push Mnuchin not to cut capital gains taxes MORE, and that a follow-up call is expected in two weeks.
Trade talks are slated to resume in September.
Some experts say China may be digging in for a more protracted trade battle, calculating it can outlast Trump’s presidency. While the yearlong dispute has taken a bite out of China’s economy, the trade war’s impacts on the U.S. economy could have repercussions come November 2020.
“Today’s announcement doesn’t address the vast majority of tariffs that are driving uncertainty, putting farmers out of business and causing small businesses to slow hiring,” the group Tariffs Hurt the Heartland said in a statement.
“Instead of picking temporary winners and losers and holding the U.S. economy hostage, it is time to reach an agreement that finally puts an end to the trade war,” the group added.
Trump also faced skepticism from Democrats in Tuesday’s retreat.
“Postponing tariffs on video game consoles and pet toys is giving Trump the stock market bump he wants, but he’s still going ahead with tariffs on books, school supplies and clothes that will hit working Americans the hardest,” said Sen. Ron WydenRonald (Ron) Lee WydenBusiness groups to Trump: Tariff delay isn’t enough Democrats give cold shoulder to Warren wealth tax Senate Dems urge Mnuchin not to cut capital gains taxes MORE (Ore.), the top Democrat on the Senate Finance Committee, which oversees trade.
“As I have said many times, I fully support going after China’s cheating on trade. But Trump’s incoherent posturing is hitting American pocketbooks without changing China’s behavior,” he added.