Shoppers could be collateral damage if US expands tariffs | Las Vegas Review-Journal
85°F
weather icon Partly Cloudy

Shoppers could be collateral damage if US expands tariffs

WASHINGTON — For many Americans, President Donald Trump’s trade war may soon get very real.

His administration is preparing to extend 25% tariffs to practically all Chinese imports not already hit with duties, including toys, sneakers, shirts, alarm clocks, toasters and coffeemakers. That’s roughly $300 billion worth of products on top of the $250 billion targeted earlier.

“The administration’s decision to announce a tax on every product coming from China puts America’s entire economy at risk,” the Retail Industry Leaders Association said in a statement. “Americans’ entire shopping cart will get more expensive.”

Trump’s tariffs are meant to put pressure on China in trade negotiations. The two countries have held 11 rounds of talks over American allegations that China steals technology, forces foreign companies to hand over trade secrets and unfairly subsidizes its own companies in a push to challenge U.S. technological dominance.

3,805 products listed

The Office of the U.S. Trade Representative on Monday published a list of 3,805 products that could be hit for the first time with 25% tariffs. The list includes things like tuna, pacifiers, saw blades, flashlights, door chimes, billiard balls and golf carts. It excludes pharmaceuticals and rare-earth minerals used in electronics and batteries.

The agency will take public comments and hold a hearing on the proposed tariffs June 17.

In its earlier rounds of tariffs on Chinese products, the administration tried to limit the effect on American consumers by focusing on so-called intermediate goods — imported components that U.S. companies use to make finished products.

That is about to change. Companies are already bracing for the fallout.

E-Blox, an educational toy company in Buffalo Grove, Illinois, imports toys from China and assembles and packages them in the U.S.

“We are keeping a close eye on this next round,” said E-Blox Chief Operating Officer Joe Seymour. “That would be devastating.”

If he tries to pass along the higher costs from the new tariff on toys to customers, he said, he will lose sales. And the company’s profit margins aren’t big enough for it to simply absorb the tariffs, he said.

Could E-Blox move manufacturing back to the U.S. — as Trump has suggested — to dodge the taxes on imports? Seymour said that would be hard because the Trump administration has slapped import taxes on the Chinese plastic injection molding machines he would need to produce toys in this country.

China, for its part, has punched back by imposing tariffs on $110 billion in U.S. products.

“Little squabble”

Trump on Tuesday shrugged off the tariff war. “We’re having a little squabble with China,” he said at the White House.

Mary Lovely, an economist at Syracuse University, said it is unclear whether the expanded tariffs will pressure Beijing to give in to U.S. demands.

Chinese leaders have been trying to shift their economy away from the low-margin consumer goods that make up a big share of the new $300 billion hit list and toward more expensive high-tech products. They might not want to sacrifice their technological aspirations to save jobs in industries that aren’t part of their plan, Lovely said.

Some U.S. importers might try to switch to suppliers outside China, in countries like Vietnam and Indonesia. But the transition won’t be easy. Costs could rise and quality slip as new suppliers replace experienced Chinese contractors.

“We’ve all worked for more than 20 years to get the manufacturing safety standards to the highest levels ever from vendors from China,” said Jay Foreman, CEO of Basic Fun!, a toy company in Boca Raton, Florida, that imports from China. He said the company cannot simply switch to suppliers in India or Indonesia and can’t move manufacturing to the U.S. either.

“For crying out loud, unemployment is 3.6%. Who is going to want to paint the eyeballs onto a Marvel action figure or Barbie doll here?” he said. “It’s just not going to happen.”

Some businesses are still reeling from the earlier tariffs.

At the Luggage Shop of Lubbock in Texas, business is down 6% from the same period last year.

“People are still traveling and buying, but they’re just not buying as much of the upper mid-price points and higher price points, which is our bread and butter,” owner Tiffany Zarfas Williams said. She had to drop plans to hire an extra person for the holidays.

As the trade war goes on, she said, “I don’t know whether we’d be able to add any additional people.”

———

Rosenberg reported from New York.

Associated Press writers Joe McDonald in Beijing, Anne D’Innocenzio in New York and Jill Colvin in Washington contributed to this report.

Don't miss the big stories. Like us on Facebook.
Business Videos
How much do Las Vegas casino CEOs make?
Las Vegas gaming CEOs made anywhere between $1 million and $24 million last year, according to company filings with the U.S. Securities and Exchange Commission. ((Las Vegas Review-Journal)
30-year-old Rio needs a little TLC
Nearly 30 years after the Rio opened, the red and blue jewel that helped catapult Las Vegas to a new level with its buffet and nightclub has lost its status along with its shine.
The latest on the Drew Las Vegas - VIDEO
Eli Segall recounts his tour of the Drew Las Vegas, formerly the Fontainebleau, on the Las Vegas Strip. (Michael Quine/Las Vegas Review-Journal)
Pinball Hall of Fame to move near south Strip
Operators of the Pinball Hall of Fame have been approved to build a new, larger arcade near the south edge of the Strip on Las Vegas Boulevard near Russel Road. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
National Hardware Show underway Las Vegas
The National Hardware Show kicked off Tuesday at the Las Vegas Convention Center (Mat Luschek / Review-Journal)
Caesars for sale?
Caesars Entertainment Corp. has been swept up in takeover speculation since the company’s share price tumbled last year amid disappointing earnings and concerns over a recession. Amid the decline, hedge funds scooped up shares. Billionaire activist investor Carl Icahn began buying shares of Caesars as early as January. Icahn acquired nearly 18 percent by mid-March. In February Icahn called on the Caesars board to study a sale as a way to boost shareholder value.
Las Vegas home prices
Las Vegas home prices grew fastest among major markets in February for the ninth straight month. But amid affordability concerns, the growth rate has slowed down. Southern Nevada prices in February were up 9.7% from a year earlier, according to the latest S&P CoreLogic Case-Shiller index. The last time Las Vegas' price growth fell below 10% was in September 2017, S&P Dow Jones Indices reported.
Free Parking Coming To Wynn
Free parking will come to the Wynn and Encore resorts on May 1, 2019. (Mat Luschek / Review-Journal)
Founding Venetian employees talk about 20 years at the Strip resort
The Venetian, which opened May 3, 1999, is celebrating 20 years on the Las Vegas Strip. Seven original employees talk about opening the luxury resort and working there for two decades. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Circa aiming for December 2020 opening
The 1.25-million-square-foot property will have 44-stories and 777-rooms. It will also have a separate nine-story, 1,201-space parking garage.
Boxabl official explains the building concept
Boxabl business development manager Galiano Tiramani shows off a room built by his company. (Blake Apgar/Las Vegas Review-Journal)
TI/Mirage Tram reopens
The tram that shuttles guests between TI and Mirage reopened this week after being closed for much of 2018.
Las Vegas Convention Center expansion taking shape
Renderings and actual footage show how the Las Vegas Convention Center is evolving.
Former Starbucks CEO Howard Schultz at Las Vegas convention
Former Starbucks CEO and potential presidential candidate Howard Schultz spoke at the Epicor Insights user conference at Mandalay Bay Convention Center Wednesday, April 17, 2019. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Drew Las Vegas to open in the second quarter of 2022
The 67-story Drew Las Vegas is slated to open in the second quarter of 2022 at the north end of the Las Vegas Strip. (Michael Quine/Las Vegas Review-Journal)
NAB Day 1 (Time Lapse)
NAB kicked off at the Las Vegas Convention Center on Monday, April 8, 2019. (Mat Luschek / Review-Journal)
National Association of Broadcasters Show shows 1mm thick 8K TV with 22.2 channel digital sound
Japan’s NHK Science & Technology Research Laboratories booth featured a 1mm thick 8K TV system used in conjunction with a 22.2 channel digital sound system at the National Association of Broadcasters Show at the Las Vegas Convention Center. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Nevada shoppers react to Smith’s no longer accepting Visa credit cards
On March 1, Smith’s announced that it would no longer be accepting Visa credit cards at any of its 142 supermarkets, including the 45 in Nevada.
Massachusetts Gaming Commission asks how long Wynn executives knew about misconduct
Business reporter Rick Velotta gives an update on the adjudicatory hearing on the suitability of Wynn Resorts to retain its gaming license in Massachusetts.
Henderson app developer part of Startup in Residence
Henderson based developers of the app On Point Barricade are taking part in Startup in Residence, a North America program dedicated to pairing tech companies with governments. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Sam's Town employees and customers talk of their love for the iconic casino
Longtime Sam's Town employees and customers love each other and love their casino. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Las Vegas apartments rents
Las Vegas’ apartment market has accelerated in recent years. Developers are packing the suburbs with projects, landlords are on a buying spree, and tenants have filled buildings.
William Boyd talks about the birth of Sam's Town
On the eve of the 40th anniversary of Sam's Town, William Boyd, executive chairman of Boyd Gaming and son of hotel namesake Sam Boyd, talks about how the casino became one of the first local properties in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
High Roller observation wheel turns five
The world’s tallest observation wheel celebrates it’s fifth year on Sunday, March 31, 2019. (Michael Quine/Las Vegas Review-Journal) @Vegas88s
Escape Room Industry Growing In Las Vegas
Escapology employees discuss the growing escape room industry in the U.S. and Las Vegas. (Bailey Schulz/Las Vegas Review-Journal)
Impact of parking fees on visiting the Las Vegas Strip
There are no data showing a relationship between Strip resort and parking fees and the number of out-of-state visitors to Las Vegas. But there are data showing a relationship between Strip parking fees and the number of local visitors to the the Strip. ‘’As a local, I find myself picking hotels I visit for dinner or entertainment, based on whether they charge for parking or not,”’ said David Perisset, the owner of Exotics Racing. ‘’It is not a matter of money, more of principle.’’ A 2018 survey by the Las Vegas Global Economic Alliance found 36.9 percent of Clark County residents reported avoiding parking at Strip casinos that charge for parking. 29.1 percent reported avoiding using any services from a Strip casino that charges for parking.
MGM's sports betting deals
MGM Resorts International signed a sports betting sponsorship agreement with the NBA in July It was the first professional sports league to have official ties with a legal sports betting house. The deal came just two months after the U.S. Supreme Court overturned a law prohibiting sports betting in most states. In October, MGM became the first gaming company to sign a sports betting partnership with the NHL. In November, MGM became the first gaming company to sign a sports betting partnership with the MLB. Financial terms of Tuesday’s deal and earlier partnerships have not been announced.
Faraday puts Las Vegas land on the market
Nearly two years after Faraday Future bailed on its North Las Vegas auto factory, the company has put its land up for sale. (Michael Quine/Las Vegas Review-Journal)
El Cortez owner Kenny Epstein on running the iconic property
Kenny Epstein, owner of the El Cortez Hotel in downtown Las Vegas, talks about Jackie Gaughan mentorship and answers rumors about bodies in the basement at the mob-era casino. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
LVCVA recommends construction of underground people mover
The Las Vegas Convention and Visitors Authority announced the recommendation for an underground people mover for the convention center. The system would have the potential to expand and connect Downtown and the resort corridor all the way to McCarran. (Michael Quine/ Las Vegas Review-Journal)
THE LATEST
Officials raid 247 Colorado homes growing black market pot

Authorities said Friday they raided hundreds of black market marijuana operations in Colorado that flouted the state’s cannabis law by growing tens of thousands of plants in Denver-area homes and selling the drugs out of state.

Family of woman mauled by lion seeks for new regulations

Months after the mauling last December at the Conservators Center in Burlington, North Carolina, the family still questions the sanctuary’s safety protocols.

Police seek suspect after explosion in French city of Lyon

France’s counter-terrorism prosecutor said an investigation has been opened for “attempted murderer in relation with a terrorist undertaking” and “criminal terrorist association.”