Retail federation warns against trade war with China

The National Retail Federation (NRF) has asked President Trump's administration to "stop playing chicken with the economy" after the White House yesterday ordered the U.S. Trade Representative to consider tariffs on an additional $100 billion of Chinese products.

Trump's proposal would impose tariffs on a large portion of Chinese goods that entered the United States — about $505.6 billion last year, according to The Washington Post.

The president's call for more tariffs came after China issued a list of tariffs against $50 billion in U.S. goods — including soybeans — in response to Trump's recent actions.

In a prepared statement, NRF President and Chief Executive Officer Matthew Shay expressed concern that a trade war with China would be harmful to the U.S. economy.

"To be clear, we agree it's time to address China's unfair trade practices, but an additional $100 billion in tariffs amount to $100 billion in taxes on the American people," said Shay.

More tariffs could erase the economic benefits that stemmed from the recent tax reform package, Shay said.

"These tit-for-tat trade actions could spell disaster for the U.S. economy and make it harder for Americans across the country to afford everyday products and basic necessities," he said. "It is inevitable that China will respond with more retaliatory actions that cause even further harm to American farmers, businesses and consumers. We urge the administration to change course and stop playing a game of chicken with the nation's economy."