Translation. Region: Russian Federal
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
WASHINGTON, June 9 (Xinhua) — American businessmen warn that the U.S. administration’s ever-changing trade policies are making it difficult for them to plan for the future, leading to a freeze in hiring and investment, The Wall Street Journal reported.
John Starr, owner of UltraSource, a Kansas City, Mo., supplier of meat processing and packing equipment, said he is holding off on hiring or making additional capital investments until there is clarity on tariffs.
The company is waiting for suppliers in Europe to finalize $20 million in orders it placed before the Trump administration’s 10 percent tariffs went into effect on April 9, the report said. That means it faces a $2 million tax bill if the tariffs remain in place.
“How am I supposed to pay for this?” said J. Starr, the third-generation owner of the company. “It could wipe out the entire year’s profits.”
For months, US President Donald Trump has announced one significant tariff increase after another, at times switching from escalation to temporary settlement.
“Where this all ends depends on what Trump decides to do next, and frankly, even Trump doesn’t know what Trump will do next,” Christopher Thornberg, a founding partner at Beacon Economics in Los Angeles, was quoted as saying in the article. “So it’s almost impossible to know where this is going.”
In this environment, the US economy faces three main risks in the coming months, namely a potential rise in unemployment, a decline in consumer demand, and disruptions caused by financial market turmoil or sharp changes in sentiment, the article says.
With the possibility of companies laying off workers due to low demand remaining, unemployment could rise quickly once such a scenario becomes a reality.
At the same time, the level of delinquent debt on consumer loans has been rising for a year, raising concerns that the worsening financial situation of low-income borrowers could lead to a more noticeable slowdown in consumer spending, the article notes.
For many companies, the uncertainty caused by Trump’s sudden and seemingly arbitrary tariff announcements has impacted sales prospects this year, the article says.
“I have to take action immediately,” said J. Starr. “We will be very careful about any cash expenditures just because we need the money to pay the tariff.” -0-