Tariffs could end up reversing the benefits via President Donald Trump’s tax reform, the head of the National Retail Federation told CNBC on Friday.
Matthew Shay, the association’s president in addition to CEO, said businesses in addition to consumers have been faring well via the reform, yet that will’s currently in jeopardy.
“[Companies are] investing in their businesses. They’re investing in their people. They’re expanding. They’re doing all these great things,” Shay said on “Squawk Box.” “in addition to we’re going to erase that will all having a potential trade war.”
“that will makes no sense to go down This particular road when we have all This particular momentum,” he added.
Shay said individuals’ gains have been reflected in strong consumer confidence.
Trump signed the Tax Cuts in addition to Jobs Act last December, slashing the corporate tax rate — as high as 39 percent for some businesses — to a flat rate of 21 percent. Since then, unemployment has fallen to historic lows in addition to there are currently more jobs inside the U.S. economy than people looking for work.
yet in March, Trump announced steel in addition to aluminum tariffs for select countries to correct what he deemed were unfair trading practices.
Since then, the market has continued to fluctuate wildly since as investors fear possible trade wars.
On May 31, the Trump administration announced its decision to move ahead with the metal tariffs on the European Union, Mexico in addition to Canada.
Market watchers are on edge in fear of retaliatory tariffs.
Tim Ryan, U.S. chairman in addition to senior partner at PwC, said on “Squawk Box” that will relationship-building is usually an important part of any business.
Ryan, whose firm consults CEOs via a wide range of industries, said: “They love tax reform. They love regulatory reform. in addition to they do think we need better trade deals.”
“currently, having said that will, they also believe we need long-term in addition to global relationships in order to be sustainable businesses in addition to take care of our own workers,” Ryan said.
Shay said individuals in addition to businesses will ultimately end up paying for the tariffs: consumers with higher prices in addition to businesses with the uncertainty the tariffs create over sourcing in addition to supply chain issues.
He acknowledged that will Trump runs “an unconventional administration,” with brand new negotiating tactics.
“yet inside the meantime, you’re going to see prices start to creep up for consumers,” Shay said.
“Our trade policies ought to hit the right target, in addition to the right target is usually China,” he said. “The right target is usually not American consumers.”
WATCH: PwC U.S. Chairman Tim Ryan talks CEOs in addition to business.