Business
2019.06.20 20:30 GMT+8

U.S. businesses detail possible hardships if new round of tariffs are imposed

Updated 2019.06.20 20:30 GMT+8
CGTN's Global Business

A U.S. hearing on a proposed new round of tariffs on Chinese imports continues this week. Electronic manufacturers say that their Chinese suppliers are reliable, and are detailing the hardships they would suffer if the tariffs were put in place.

One of America's oldest and largest TV design and manufacturing companies, PDi, has had a strong relationship with Chinese suppliers in Xiamen City, southwest China's Fujian Province, since 2007. They work together on healthcare, providing products to fit the demanding and evolving needs of healthcare environments.

PDi’s supply chains director Charles Stout stated that the industry has higher requirements in safety of equipment than ordinary ones, and its Chinese suppliers have offered reliable and customized solutions for a long time.

Charles Stout, supply chains director of PDi. /CGTN Photo

“We [work] closely with our Chinese suppliers to develop the solutions that will meet requirements. Also what is important is the reliability aspect, because those patient-used televisions are open 18 hours a day. So it is built to our specification and requirement,” he explained.

Meanwhile, the proposed tariffs would increase the cost of cash registers and point of sale (POS) devices, according to Amy Zirkle, interim CEO of Electronic Transactions Association.

“Electronic payments are everywhere. They are significant and are critical to keeping the economy going and keeping commerce driving,” Zirkle said.

She was concerned that if additional tariffs were imposed, it would lead to “significant barrier for upgrading to the latest devices, then bringing up the issue of payment security.” And finally, it would have a negative effect on U.S. businesses and consumers.

Moreover, not only are electronic firms opposed to the proposed tariffs, but leaders of numerous American retailers warned that costs related to tariffs on goods imported from China would hit their profits.

Best Buy CEO Hubert Joly said the impact of the proposed 25-percent tariffs would result in price increases and be felt by U.S. consumers. Meanwhile, Home Depot executive vice president Edward Decker was worried that if the latest round of tariffs holds, it would increase the annual cost of goods sold by one billion U.S. dollars.

Walmart CFO Brett Biggs also expressed that the higher tariffs would lead to higher prices for customers. And one of the largest retail chains J.C. Penney anticipated a more meaningful impact on its private and national brands if the proposed tariffs take effect, based on its CEO Jill Soltau.

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