• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Trump’s tariff threats send U.S. companies scrambling for lobbyists and loopholes
Editor's Pick

Trump’s tariff threats send U.S. companies scrambling for lobbyists and loopholes

by November 13, 2024
by November 13, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

In the days since President-elect Donald Trump won the presidential race, Nicole Bivens Collinson’s phone has barely stopped ringing.

Collinson, who helps lead the international trade and government relations division at the lobbying firm Sandler, Travis & Rosenberg, said she is fielding “dozens and dozens and dozens” of calls from anxious U.S. companies looking to protect themselves from Trump’s hardline tariff plans by finding loopholes and exemptions.

“Absolutely everyone is calling,” Collinson told CNBC. “It is nonstop.”

Over the course of the 2024 campaign, Trump made universal tariffs a core tenet of his economic platform, floating a 20% tax on all imports from all countries with a specifically harsh 60% rate for Chinese goods.

That hyper-protectionist trade approach sent chills up the spines of economists, Wall Street analysts and industry leaders who warned that across-the-board tariffs could make production — and in turn, consumer prices — more expensive, just as they were recovering from pandemic-era inflation spikes.

“The threat of tariffs has alarmed retailers and a wide range of other U.S. businesses,” David French, senior vice president of government relations at the National Retail Federation, told CNBC. “Our members have been working on contingency plans since President Trump secured the nomination.”

Ron Sorini, a principal at the lobbying firm Sorini, Samet & Associates, echoed that sentiment, noting that he takes at least two to three calls a day to field companies’ concerns about the proposed tariff ramp-up, especially in China.

″[Companies] question where they should go, and how do they get the components out [of China]? How do they get the whole supply chain out?” Sorini said.

When Trump unleashed his first set of China tariffs in 2018, securing an exemption became a golden ticket in corporate America, a way to safeguard a company’s China-based supply chains rather than paying the hefty price of relocation.

And to obtain that golden ticket, it paid to know the right people.

A 2021 research study found that applications for Trump’s first-term tariff exemptions were more likely to be approved when they came from lobbying firms whose employees had made political contributions to the Republican Party.

Now, with Trump set to retake the White House in a matter of weeks, tariff escalation is becoming a more likely reality.

And in corporate America, the race is on to find the right lobbyists to help companies rub shoulders with the right people, to give them an advantage in securing tariff loopholes.

“Firms are prepared,” SUNY Buffalo finance professor Veljko Fotak, one of the authors of the 2021 study, told CNBC. “The real winners of this process are going to be the lawyers and lobbyists.”

What tariffs will look like in the next Trump administration, and whether exemptions will be available at all, are both unknown.

“Until that clarity comes, businesses will have to plan for a variety of scenarios,” Tiffany Smith, vice president of global trade policy at the National Foreign Trade Council, told CNBC.

In response to CNBC’s request for comment about the Trump team’s plan for exemptions and companies’ concerns of the tariff proposals, Trump transition team spokeswoman Karoline Leavitt doubled down on the president-elect’s campaign promises.

“The American people re-elected President Trump by a resounding margin giving him a mandate to implement the promises he made on the campaign trail. He will deliver,” Leavitt told CNBC in a statement.

In the meantime, companies have been trying to set up defenses against Trump’s more aggressive trade approach. These include stockpiling goods in the short run, readying price hikes so they can pass the cost of import duties on to customers, and trying to move their production out of China.

On Thursday, Steve Madden pledged to reduce its Chinese imports by 45% over the next year in anticipation of Trump’s tariff plans.

But exiting China is a significant undertaking for many U.S. companies, especially small businesses that may not have the buying clout or leverage to move production so easily.

“What I would urge is that folks look at the impact on small businesses. Those are the people that are really getting hurt. There’s got to be some way to help companies like that,” Sorini of Sorini, Samet & Associates told CNBC. “Because they really can’t do it on their own.”

This post appeared first on NBC NEWS
You Might Also Like
  • Disney sues Florida Gov. Ron DeSantis over control of self-governing district
  • Boeing to raise as much as $25 billion to shore up balance sheet
  • Ford to spend $3 billion to expand large truck production to a plant previously set for EVs
  • Thanks to lower inflation, Americans are finally getting a raise
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Are Extremely Overbought Conditions Good or Bad for Stocks?
next post
Key Support Levels for Gold

You may also like

PGA Tour, Saudi-backed LIV merge in stunning end to bitter...

June 9, 2023

General Motors idles another auto plant, sending 2,000 workers home...

September 21, 2023

Starbucks union votes to authorize strike ahead of last scheduled...

December 18, 2024

OpenAI introduces Operator to automate tasks like vacation planning, restaurant...

January 23, 2025

Musk to be subpoenaed for documents in Virgin Islands’ Epstein...

May 17, 2023

United Airlines adds Thailand, Vietnam and Australia flights in latest...

April 3, 2025

GM lays off 1,000 employees amid reorganization and cost-cutting

November 16, 2024

United Airlines says FAA cleared it to start adding new...

May 17, 2024

Nvidia overtakes Apple as world’s most valuable company

October 28, 2024

Why Amazon sellers and retailers are flocking to TikTok Shop...

December 3, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    What Fitch’s downgrade of the U.S....

    August 3, 2023

    Trump Media shares rise again, jump...

    May 2, 2024

    Labor groups begin to unite behind...

    July 24, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here