How China tariffs could affect your wallet this back-to-school season
Former Toys 'Ru' Us CEO Gerald Storch on the impact of mounting trade tensions with China on U.S. consumers.
President Trump's latest China tariffs will not result in higher prices for American families who are gearing up for the back-to-school buying season, according to the former Toys ‘R’ Us chairman and CEO.
Gerald Storch told FOX Business on Monday that China’s latest efforts to devalue its currency give U.S. retailers a bargaining chip.
“The first thing they will do is go back to the suppliers and renegotiate their prices -- and that will not be a difficult conversation,” he said on “Varney & Co.”
Trump’s threat to impose a new 10 percent tariff on the remaining $300 billion worth of Chinese goods resulted in Beijing allowing its yuan to fall to an 11-year low.
The National Retail Federation, which includes industry giants Amazon and Walmart, predicts the new levies will affect prices on a wide range of consumer goods from school supplies, cell phones and laptops to footwear and toys.
Storch said consumers bearing the brunt of the tariffs has been “greatly exaggerated” and he added that retailers will look to manufacture goods elsewhere. With $14 trillion of U.S. consumer spending, Storch adds that the net effect on the individual will be minimal.
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“I think there’s been a little bit of hysteria about this,” he said. “I am not saying it’s good, but I think the effect is exaggerated.”