Bracing for the Impact: How Trump’s Trade War Affects Retail and Travel Industries
As the trade war between the United States and China continues to escalate, executives from various industries are expressing concerns over a potential slowdown in demand. Among those most affected are the retail and travel industries, which have seen some of the biggest names issue cautious statements in recent weeks.
Retail Industry
Delta, Walmart, and Dick’s Sporting Goods are just a few of the retail giants that have recently expressed concerns over the trade war. Delta, for instance, announced that the tariffs could cost the company up to $100 million in 2019.
Walmart, the world’s largest retailer, also acknowledged the potential impact of the trade war on its business. The company’s CEO, Doug McMillon, stated that the tariffs could lead to higher prices for consumers on certain goods. McMillon also mentioned that Walmart was considering passing on some of those costs to its suppliers.
Dick’s Sporting Goods, on the other hand, cut its full-year earnings forecast due to the trade war. The company’s CEO, Ed Stack, stated that the tariffs would increase the prices of goods sold at the company, which could lead to lower sales.
Travel Industry
The travel industry is also feeling the heat from the trade war. Airlines, in particular, are expressing concerns over the potential impact on travel demand. For instance, American Airlines Group Inc. stated that the tariffs could result in a $200 million hit to its earnings in 2019.
The CEO of Marriott International, Arne Sorenson, also weighed in on the issue. He stated that the trade war could lead to a slowdown in demand for travel, particularly from Chinese tourists. Sorenson mentioned that the tariffs could lead to a 10% decline in Chinese visitors to the United States.
Effect on Consumers
The potential impact of the trade war on consumers is a cause for concern. With retailers passing on the costs of tariffs to consumers, prices for certain goods could increase. This could lead to less spending on other items or a reduction in overall consumer spending.
Effect on the World
The trade war’s impact extends beyond the United States. Other countries could be affected as well, particularly those that are heavily reliant on exports to the United States or China. For instance, South Korea, which is in the middle of a trade dispute with Japan, could see a further decline in exports if the trade war between the United States and China continues to escalate.
Conclusion
The trade war between the United States and China is having a significant impact on various industries, particularly retail and travel. With executives from major companies expressing concerns over the potential impact on demand, it’s clear that consumers could see higher prices for certain goods. The impact on the world is also a cause for concern, particularly for countries heavily reliant on exports to the United States or China.
As the trade war continues to unfold, it’s essential to stay informed about its potential impact on your personal finances and the global economy. By staying informed, you can make informed decisions about your spending and savings.
- Retail giants like Delta, Walmart, and Dick’s Sporting Goods have expressed concerns over the trade war’s impact on demand.
- Airlines are also feeling the heat, with American Airlines Group Inc. estimating a $200 million hit to its earnings in 2019.
- Consumers could see higher prices for certain goods as retailers pass on the costs of tariffs.
- The impact on the world extends beyond the United States, particularly for countries heavily reliant on exports to the United States or China.
