Big Box stores are looking at a front battle; fending off profit loss from Amazon and other internet shopping while battling POTUS Donnie/Congress over the proposed 20% border tax all the while people are losing jobs as they shutter buildings – PB/TK
Wal-Mart, other retailers betting against Trump’s border tax – Nandita Bose April 21 2017
Target Corp, Wal-Mart Stores Inc, and other retailers are shelving considerations to move supply bases closer to the United States in the face of a possible border tax, banking instead on killing support for the tax idea in Congress. President Trump’s administration plans to impose a 20 percent tax on imports, a levy that, industry officials said, could raise US consumer prices by as much as 25 percent. Last week, the president said he favored an ‘import tax’ that could be adjusted to reflect the country of origin’s tax rate for US products.
The decision by retailers to forestall supply chain investment in countries such as Bolivia and Romania to focus on lobbying Congress shows how Mr. Trump’s ambitious agenda has instilled a new level of risk operating outside US borders. But the vagueness around Trump’s proposals and whether they may ever be implemented means retail industry executives are still not willing to change their operating infrastructure.
The Retail Industry Leaders Association, which is leading the industry lobbying effort, has conducted 140 meetings with lawmakers since December, focusing on the costs of a new tax and encouraging lawmakers who oppose Trump’s idea.
Prospects for a quick passage of a tax bill took a hit last month when the Republican attempt to overhaul the national health-care law failed to get a vote in the House of Representatives. Trump and Republican leaders have said they still intend to pass a health care reform law first, casting further doubt on when Congress may consider tax reform
Continue to csmonitor.com article: http://www.csmonitor.com/USA/Politics/2017/0421/Wal-Mart-other-retailers-betting-against-Trump-s-border-tax
