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Reuters reports that Target CEO Brian Cornell will testify today at a US House of Representatives hearing, arguing against a Republican-backed proposal that would create a border adjustment tax on imported products (and also offering tax credit on exports). The Cornell position is that such a tax would result in increased prices and thus hurt consumers.

The story says that Cornell may be the only person testifying who opposes a border adjustment tax. Other executives scheduled to testify include Juan Luciana, president and CEO of agribusiness Archer Daniels Midland, and former Walmart CEO William Simon, who have supported the imposition of such a tax.

The Reuters piece says that "House Speaker Paul Ryan argues the proposed border tax, which is estimated to garner $1 trillion, will not affect prices and will allow rate cuts for businesses while not creating deficits, but retailers warn that it could raise consumer prices as much as 15 percent ... The outlook for passage of the border tax - which drew staunch opposition from retailers - remains perilous, especially as key Senate Republicans and President Donald Trump have refused to endorse it."

The hearing is seen as an attempt to jump start momentum in favor of such a tax.
KC's View:
I'm on the side of most retailers on this one. Not only would a borer adjustment tax result in increased prices, but from everything I've read it also would create a trade war. I also, quite frankly, think that most Americans would be against it since a border adjustment tax would result in cars and televisions and a vast number of other products that would cost more.

Stand in the center of any mall in the US, and look around. The imposition of a border adjustment tax would result in higher prices at most of the stores you see, and probably would make their ability to stay in business a lot more problematic. If they close, people lose their jobs. People lose jobs, and the economy gets hurt.