Trade groups tell Trump his China tariffs risk a "chain reaction"

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A group of 25 major USA retail companies, including Walmart, Costco and Best Buy, on Monday urged the Donald Trump administration not to impose sweeping tariffs on Chinese imports.

President Trump has received an appeal from trade associates that represent U.S. giants against going through with a plan to strike tariffs on Chinese products and services.

"We agree it's time to address China's unfair trade practices, but we can do so in a way that doesn't destroy jobs, create uncertainty for businesses and increase every American's cost of living".

"These procedures will allow the Administration to further hone these tariffs to ensure they protect our national security while also minimizing undue impact on downstream American industries", Ross said.

As you continue to investigate harmful technology and intellectual property practices, we ask that any remedy carefully consider the impact on consumer prices.

A 10% tariff on aluminum and 25% tariff on steel products from all countries will be imposed starting March 23 as a result of the Section 232 investigation.

"We urge the administration to take measured, commercially meaningful actions consistent with global obligations that benefit United States exporters, importers, and investors, rather than penalize the American consumer and jeopardize recent gains in American competitiveness", the trade groups said in their letter.

"Save manufacturing jobs and say no to steel tariffs", the ad says.

Slapping tariffs on imports of information and communications technology products from China would reduce US investment in innovation and lower productivity growth, according to a report by the Information Technology and Innovation Foundation.

But any United States individual or organization may object to the exemption setting up a battle between domestic steel and aluminum producers that could benefit from the protective tariffs and companies that rely on imports. Washington could impose more than $60 billion in tariffs on goods ranging from electronics to apparel, footwear and toys.

Potentially broader anti-China tariffs and investment restrictions under consideration as part of a U.S. intellectual property probe have raised concerns that retaliation could seriously diminish global trade and choke off the strongest global growth since the G20 was formed during the 2008 financial crisis.

Several G20 officials, including the finance ministers from host country Argentina and Germany, said they will insist on maintaining G20 communique language emphasizing "the crucial role of the rules-based worldwide trading system".