Newest tariffs ‘will affect people in stores’: Former JCPenney CEO

Newest tariffs ‘will affect people in stores’: Former JCPenney CEO


NEIL: WITH ALL THE ATTENTION ON THE HURRICANE YOU MIGHT HAVE LOST TRACK THAT A BILLIONS DOLLARS WORTH OF TARIFFS WENT INTO EFFECT. $115 BILLION OF FRESH TARIFFS ON CLOTHING ELECTRONICS, BABY SUPPLIES, PROCESSED MEATS AND CHEESES. THAT REALLY BURNS ME. THE CHINESE SET IN MOTION THEIR OWN TARIFFS $70 BILLION OF U.S. GOODS, CRUDE OIL, SOME PHARMACEUTICALS, SOYBEANS AND THE LIKE. THIS TIT-FOR-TAT IS ON. THE IMPACT IS PRETTY CLEAR TO MY NEXT GUEST, FORMER JCPENNEY CHAIRMAN ALLEN QUESTROM. THANK YOU FOR COMING.>>NICE TO BE WITH YOU, NEIL. NEIL: THE PRESIDENT ARGUED THE IMPACT IS MINIMAL HERE, THE CHINESE DEVALUE THEIR CURRENCY, THEY’RE SWALLOWING A LOT OF THIS, NOT YOU. WHAT DO YOU MAKE OF THAT?>>SOME OF THAT IS TRUE. THIS WILL BE THE MOST SIGNIFICANT TARIFF, THIS WENT ON THE FIRST. THIS WILL START TO AFFECT PEOPLE IN THE STORES BUT WHAT I THINK IS HAPPENING, IS YOU SEE MANUFACTURERS AND RETAILERS TRYING TO ABSORB SOME OF IT. THERE WILL BE SOME PASSED ON TO THE CONSUMER THIS WILL BE THE FIRST TIME THE CONSUMER REALLY HAS HAD EFFECTS OF, WILL HAVE THE EFFECTS OF THIS TARIFF. A LOT OF THESE TARIFFS BEFORE HAVE BEEN AFFECTING FARM INDUSTRY. NEIL: RIGHT.>>THEY HAVE BEEN REALLY AFFECTED. A LOT OF SMALL INDUSTRIES HAVE BEEN AFFECTED. IF THIS TARIFF GOES ON. IT DOES AFFECT THE CONSUMER. YOU WILL START TO SEE JOBS GROW SLOW. COMPANIES ARE NOT INVESTING AS MUCH AS THEY WERE IN THE BEGINNING. YOU SEE, GDP DROPPED DOWN TO 2% FROM 3%. THAT HAS GOT TO BE A CONCERN TO THE PRESIDENT EVEN THOUGH HE MAY NOT SAY THAT. SO WE, WE HAVE TO, WE HAVE TO FIGURE OUT HOW TO GET OVER THIS THING QUICKLY SO WE BOTH WIN. ONE SIDE CANNOT WIN THE WHOLE BATTLE. THAT IS THE PROBLEM YOU GET INTO. THESE TARIFFS WARS TEND TO BE EGO-ORIENTED. AT THAT IS SOMETIMES HARD TO GET OVER. WE HAVE A ELECTION COMING UP. IT WOULD NOT BE GOOD THING TO SEE OUR ECONOMY IN NEGATIVE, IF PRESIDENT TRUMP WANTS TO SEE RE-ELECTION. THAT IS CRITICAL PIECE WHY THIS COUNTRY IS DOING SO WELL, HE IS DOING WELL, IT IS BECAUSE OF THE ECONOMY. NEIL: IF IT IS A HICCUP EVEN A LITTLE BIT, MORGAN STANLEY PUT OUT A DEFENSIVE POSTURE TODAY IN THE INVESTOR RECOMMENDATION, MAYBE YOU SHOULD SHORT GROWTH STOCKS AND DEALING WITH ECONOMICALLY, RESILIENT ISSUES. THIS FOLLOWS ON HEELS OF CONTRACTION OF THE LATEST MANUFACTURING REPORT DOWN TO LEVELS THREE YEARS AGO. WE SHOULD POSIT, YOU ALWAYS REMIND ME HERE, THESE ARE STILL PRETTY SOLID LEVELS. BUT THEY ARE GOING THE OTHER WAY NOW. DOES THAT WORRY YOU?>>WELL THEY ARE GOING THE OTHER WAY. WE HAVE BEEN VERY FORTUNATE, OBVIOUSLY THE UNITED STATES HAS STRONGEST ECONOMY IN THE WORLD BECAUSE OF A ACTIONS THAT THE PRESIDENT TOOK WHEN HE FIRST CAME INTO OFFICE BUT THIS COULD CHANGE THAT COURSE. QUITE FRANKLY, WE TALKED ABOUT 3% GROWTH IN GDP TO KEEP OUR DEBT DOWN BUT IF IT GOES DOWN INTO THE 2% CATEGORY, YOU WILL START TO SEE THE DEBT GO EVEN HIGHER BUT MY CONCERN IS OBVIOUSLY, IS OBVIOUSLY THE JOBS THAT WE’RE GOING TO LOSE, PEOPLE BEING AFFECTED FOR THE HOLIDAY SEASON, THEIR COSTS WILL GO UP. WE CAN LIVE THROUGH IT. THEY’RE NOT INTO AN ELECTION COMING UP NEXT YEAR, WE ARE SO WE HAVE TO COME TO GRIPS. I PERSONALLY WOULD HAVE LIKED TO SEE THIS WORKED WITH THE WORLD TRADE ORGANIZATION. WHEN YOU DO THESE THINGS WITH SUCH MASSIVE ECONOMY AS CHINA, YOU NEED A TEAM WORK, NOT JUST ONE COUNTRY TRYING TO DO IT. I THINK WE COULD HAVE RESOLVED THIS. WE MAY BE COME SOME HALFWAY AGREEMENT NOW. GO BACK AFTER THE ELECTION. BUT I HOPE WE HAVE SOME KIND OF A SETTLEMENT FOR THE BENEFIT OF OUR ECONOMY AND FOR OUR CONSUMER. NEIL: WHAT DID YOU THINK, ALAN, THE PRESIDENT BLAMING A LOT OF COMPANIES CITE THIS AS REASON THEY WILL HAVE LOUSY QUARTER TELEGRAPHING TROUBLES TO COME? IN OTHER WORDS IT COULD BE A LOT OF THEIR OWN PROBLEMS OF THEIR OWN MAKING AND THEY’RE HANGING THEIR HAT ON THIS AS AN EXCUSE?>>WELL I THINK HE IS MORE RIGHT THAN WRONG ON THAT. YOU SAW, YOU SAW THE TARGET, WALMART HAD GOOD, HAD GOOD FIRST HALF. NEIL: RIGHT.>>SO THEY FIGURED OUT HOW TO DO THINGS THAT GET THEIR CUSTOMER SATISFIED. I AS RETAILER AND AS A BUSINESS PERSON BELIEVE IT IS MY JOB TO FIGURE WHAT I AM GOING TO HAVE TO DO TO MAKE MY CUSTOMER HAPPY. THAT IS MY JOB. THAT IS WHAT I GET PAID FOR. WHEN I HAVE OBSTACLES LIKE THIS, I HAVE TO FIGURE WHAT THE ALTERNATIVE IS TO GET AROUND THAT. THAT MAKES THE BUSINESS FUN. CONSTANTLY CHALLENGED TO COME UP WITH NEW IDEAS TO GET SOLVED SO THAT YOU CAN GET YOUR CUSTOMER BACK INTO YOUR STORE OR BACK INTO BUYING YOUR PRODUCT AS A CORPORATE. NEIL: ALL RIGHT.

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About the Author: Oren Garnes

100 Comments

  1. Fake news. We are nolonger a piggy bank for China to sell their goods and them charging trillions. Those days have end thanks to our great president. Two we not a piggy bank where China can steal us blind by charging tariffs and we didn't. Or can they take our secrets. Good bye Nail Cavuto you are fake as your other Fox news reporter Shepherd Smith.

  2. Here is a thought, the same people who want to take over America and bring dictatorship to this country our the people you support and buy from? How dumb. These stores only care about there profit, and most of the big stores now are run by Chinese. How about supporting.the country you live in

  3. All it means to AMERICA make our own factories and start making our own brands and make the prices even more competitive.

  4. of course it’s will affect US consumers. If you have cancer, the chemotherapy processing is very painful. So will you stop the chemotherapy because it’s pain?

  5. Cavuto is not WYSIWYG !
    Always watch Out for Cavuto's Hidden Anti-Trump Agenda !

    Talking up "Cost to Americans" due to Trump Tariffs i.e Pennies on the dollar for things we do not need .. with Retailer / Bankrupt JC Penny Questrom = FearMongering > Communist China inspired Anti-Trump Propaganda.

    FOX & Micky are In Communist Cahoots

  6. I went to Burlington Coat Factory to buy a leather coat made here in the factory. I thought I would get quality, I was so upset everything and I mean everything in that store I picked up was made in China Disgusting.

  7. Whatever it takes at first !! We will take the small hit now to reap the overall longer, larger rewards in the future !!
    Thank You President Trump !!

  8. We need to make our own materials here. The stuff we get from China, Nam and other countries is poor. The materials are substandard and the sewing, not so good.

  9. Don't buy Chinese junk, but of course this chicom puppet will not tell you that when he can fearmonger and earn bonus points with his Chinese masters.

  10. TRUMP2020🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸

  11. We're taking advice from the CEO JCPenney's like he knows how to grow an economy I'm not seeing any new JCPenney's being built here lately

  12. Our greedy politicians got us into this mess! Trump is getting us out of it! I'm willing to pay a little more to protect our country!!!!!

  13. Well…Tariffs might effect consumers…Guess we should keep letting China screw us over. God forbid we sacrifice for the better good of this nation.

  14. Tariffs won’t effect America if we don’t buy goods from China, raise the tariffs and penalize companies doing business in China.

  15. My wife and I went to cabelas to buy hiking shoes and none were made in America, 75 % of the shoes were made in China, the store Manager said the don’t carry USA brands, we walk out without a purchase.

  16. Time to stop buying so much crap..we have more crap than we need..I want trump to put China to the fire..take our companies and jobs back home..

  17. NEIL CAVATO HATES PRESIDENT TRUMP….THIS GUY IS A P.O.S ALL HE DOES IS TRY TO SLANDER OUR BELOVED PRESIDENT. FOX YOU DISAPPOINT ME…. trump has helped our economy….fire neil cavato is a negative man

  18. I support President Trump 100% to put more tariffs on China , Don't ever trust Communist China they cheats ,lies !!!. I rather pay little more made in the U.S

  19. Government pocketing the tariffs and collecting the extra tax on inflated prices, sounds like a back door deal for both countries. Why would they not pass the tariffs onto the consumers so China is the one paying the bill instead of draining more wealth from the American people. Watch "JFK to 911 it's all a rich mans trick"

  20. It's obvious Neil eats Chinese processed meats and cheeses he's short a few brain cells.  Really does anyone to eat Chinese food products ?

  21. I guess Nike is going to take a hit. That's why I buy New Balance shoes made in America. Been using New Balance since I was in the military. NB may have to purchase some of their materials here at home now, but then that's a good thing.

  22. Good. Now maybe we can make it better and make it in the u s .so we pay a little more so what. No China no Democrats no Hollywood no gays Disney. Time to turn on the great American industry it's great news. Amen.

  23. The tariffs give other counties an opportunity to take away a slice of China's American market share. China loses while the American consumer and China's competitors will win in the long run.

  24. Trump is riding Obama's coattails on the economy. Obama lifted US economy up after the 2008 recession. Trump has done nothing but ruin the economy.

  25. Neil the not so bright. You are looking and talking about the wrong thing. The Elephant in the room IS GOLD and SILVER. They are going up up up!!! Say good bye to fake funny money, and then say HELLO to the Gold Standard is coming back to the real world. This is why every country is trying to deflate there dollars and what we are seeing is who can get to the bottom first.

  26. Are you sick of Chinese products?
    Thank Capitalism for the situation we are in right now.

    Moving your factories overseas to save money is 100% capitalism.

  27. Boycott stores who automatically raise prices (and you know they will) in support of these tariff haters. Separate want and need…and if you NEED buy American. America first. Oppressive is the Chinese government….ask their people.

  28. I would rather pay a little more for products I buy here in America that are NOT made in CHINA!
    China must pay for all their thievery and lies and manipulation for decades ripping off America.

  29. That's what happen when we try to use someone…now they are selling back us our merchandise triple the amount…who has the last laugh…

  30. We can buy a lot of this stuff USA made or grown. We don't need China trash stuff trash, after a year or two. Buy American and MAGA. Go Trump 2020. BTW Fox, don't stray, Trump is the winning card and you know it.

  31. Socialism is the idea of hate? I thought something was just off in most of these peoples heads. Sad to watch SO many Americans be controlled by evil and say they are doing good.

  32. SHUSH, CAVUTO. YOU HAVE A TDS TRUMP DELUSIONAL SYNDROME). YOU'RE OBVIOUSLY A TRUMP HATER! CLEAR YOUR THROAT BEFORE YOU SPEAK.

  33. Oh no you may pay extra for some junk product you really dont need any ways.
    if it us a real demand then anerican companys will fill that need thus more jobs with competetive pay .

  34. The holidays are close and things slow down its the least productive months and other than the spike of shopping and the need for part time workers the numbers will be odd and low.
    this is wheb dems really do alot if economic stats as it doesnt reflect the average of the year.

  35. Not really. Our trade to china is only .9% of our GDP their trade to the US is only 2.9% GDP. This does not hardly change anything. So you may spend a little bit more if you buy products from China. Here is a grand idea. Dont buy anything from China.

  36. Stop selling Chinese crap if you're worried so much. This clown is trying to put his profits and his relationship with communist China above that of the American consumer, while threatening Trump at the same time. What a sellout. He doesn't care about our economy. This piece of crap only cares about screwing over the u.s. consumer.

  37. I don't feel sorry for anyone paying more for China made products when prices go up. Do without, buy USA or UK but cry me a river that you have to pay more now. DO WITHOUT or if it's not USA made get it from anywhere else.

  38. Who cares , we are at war with China been a cold war for generations, poor leadership in the past kept China ahead of the game ,now that we are wanting a fair shake they get all bleached butt hurt. Made in America by Americans for Americans!!!!

  39. all these 1980s and 1990s deals are largely defunked. they were made during an era which is no longer applicable. a time when the soviets had fallen. countries were unstable broke poor insolvent non capatalistic.

    thats all over for two decades.

    some like Angela….have to Pay Nato ….others like china have to get use to the sting of real competition.everyone in europe has to meet 2.2 of GDP. mexico and central america have to employ there own people. but worldwide training wheels are coming off.

  40. Democrats should be happy to see all those Chinese Goods not getting to WalMart and prices rising…after all Capitalism and Consuming stuff is Bad.

  41. This Anchorman seems like bought and paid for by the Chinese government. The U.S doing fantastic until these China punk entered the WOT stole everything from The U.S, jobs, intellectual property and lot more…..

  42. US you need to win this trade war. I try not to by anything from China here in Canada, I try to buy local or else where. Just because mainly Chinese stuff is junk and breaks too easily.

  43. Just shows you JCPenney gets it's crap from China. No more shopping at JCpenney for me.
    Who the hell buys Chinese pork, eewww. We buy only local, same with milk, cheese and butter. No idea how these items made the list. Same with chicken and beef.

  44. Rubbish… these morons just ignore the fact that a non moronic retailer would source the products from non tariffed sources.

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