Tariffs levied as part of the U.S.-China trade war do not yet have a major impact on the American economy, but this will not continue, says Jim Cramer, CEO of PVH, Emanuel Chirico.
“I believe we can all do it in the short term, with the expectation that it will settle because you can put pressure on your salesperson base to do certain things,” Chirico, whose business is operated by Tommy Hilfiger and Calvin Klein, said on Monday, “Mad Money.” “But in the long run it has to operate on both hands, so it will result in higher prices for the customer, that is not beneficial to the economy.
In October, the US and China decided to a partial trade agreement, and President Trump agreed not to go through tariff rise that was fixed for the following week.
And that “phase one” deal is still to be signed, contributing to the randomness of the long-running trade dispute, in which the world’s two wealthiest countries have imposed billions of dollars in tariffs on each other’s goods.
Several expect the President to move forward with a planned round of Dec. 15 tariffs if the U.S. and China have not consented to a trade deal by then.
According to the International Monetary Fund, the trade war that has lasted for two years has impacted on global economic growth.
Analysts are nervous that tariffs might lead to higher prices of commodities and thus lower consumer confidence, responsible for about two-thirds of the US economy.
Several stores, such as Target, reacted by forcing vendors to absorb the cost of tariffs to maintain costs unchanged.
This is why, Chirico continued, “the tariffs have not reached the market at this stage.” “But now unexpectedly, this year’s December, tariffs are rolling through on clothes,” Chirico said. “We have about $500 billion in commodities to be tariffed. It will affect customers