As retailers look toward 2017, one of the biggest questions is what a new President Trump will mean for retail’s priority issues — most importantly, trade and the supply chain. While there was a lot of discussion and rhetoric throughout the election cycle, the question is whether Trump will deliver on his campaign promises — and threats.
Throughout the campaign, international trade was the subject of heavy negative rhetoric from both presidential candidates. The rhetoric continues with Trump talking about withdrawing from the Trans-Pacific Partnership, renegotiating the North American Free Trade Agreement, and placing high tariffs on Chinese products. International trade is the lifeblood of the retail industry, where the ability to source high-quality products at reasonable prices from around the globe is vital to serving customers. Cutting off trade or imposing high duties that must be passed along to US consumers won’t bring back jobs or stimulate the economy. It will be imperative for Trump to focus on the facts when evaluating our trading relationships around the globe and how limiting imports would certainly impact US exports and subject key industries to retaliation.
While Trump has threatened trade, he has also promised to improve US infrastructure. This is an area where we wholeheartedly agree. We have a strong need to repair and maintain current infrastructure, and we must also address key infrastructure deficiencies, especially when it comes to freight movement and freight bottlenecks. Most importantly, we need a long-term, reliable and dedicated funding mechanism, especially for freight movement.
We also agree on the need for comprehensive tax reform — a move that would go far to restore our nation’s competitiveness in the global economy. However, we are concerned about tax reform that favors exports above imports through a border adjustability tax.
Retailers stand ready to work with President-elect Trump on a wide range of issues that will help promote jobs and growth of the US economy.