Measures to mitigate the impact of Trump tariffs and to get ready for new tariffs are being worked out by some of the larger companies in the United States such Amazon.com Inc, Toyota Motor Corp and Alcoa Corp./
While the companies are averse of getting into a confrontation with U.S. President Donald Trump. At the same time, they are also doing their best to exert as much influence as possible to dissuade him from implementing tariffs on a wide range of imported goods.
Sources have bene quoted in the media saying the industry-wide advertising campaigns and greater government lobbying is being discussed by Amazon which is the largest online retailer in the world and one that could be hard hit by imposition of tariffs on some of the products that it sells online and which are imported.
No comment from Amazon was available.
And if the Trump administration goes ahead with its plans for imposition of tariffs on imported cars and car part, the US subsidiary of Japan’s Toyota – Toyota Motor North America, could also be hit. The company reportedly flew in its workers to Washington to attend a rally in front of the U.S. Capitol this week while the company’s US head has bene meeting up with important Congress members in recent times to discuss the possible impact of the tariffs.
During the last year, meetings with the administration and Congress have also been held by top executives from General Motors Co. This car maker would be hard hit if Trump pulls out of the North American Free Trade Agreement or tariffs on imported cars and car parts are imposed. The company has bene raising concerns over the tariffs for some time now. The company had said in June that tariffs would lead to “a reduced presence at home and abroad.”
Sources have also told the media that the public policy efforts of GM would be headed by the former deputy director of the National Economic Council of Trump – Everett Eissenstat, who left his job earlier this month. Everett Eissenstat was also Trump’s adviser on international economic affairs. There was no elaborate comment from GM. No comments from Everett Eissenstat were available.,
Privately, relief is also being sought by those firms that have been adversely impacted by Trump’s already imposed tariff on imported steel and aluminum.
The Aluminum producer Alcoa was in “active discussions” with the Trump administration, the Commerce Department and members of Congress in relation to removal of the of tariffs or obtaining an exception for Canadian aluminum, said the chief executive of the company to investors in a conference call this week.
Primarily because of the tariffs that have bene imposed on import of aluminum from Canada, the company would suffer additional expenditure of as much as $14 million a month, Alcoa said this week. Canada is its biggest exporter of the metal.
There is a worry in Amazon.com that if tariff of 10 percent on $200 billion of Chinese goods is imposed by Trump, it would hit shoppers during the crucial holiday shopping season, sources from Amazon have reportedly told the media. Sources said that Amazon is making a potential assessment of the impact on its business by the threatened tariffs and the company is already making a list of the products that could be hit.
“It’s hard to think of many of our companies that don’t have some risk and exposure as a result of the tariff,” said Dean Garfield, chief executive of the Information Technology Industry Council, which counts Amazon rivals Microsoft Corp, Alphabet Inc’s Google and others as members.
(Adapted from Reuters.com)