WASHINGTON, May 7 (Reuters) - The Trump administration
is considering exempting car seats, baby strollers, cribs and
other essential items for transporting children from tariffs on
China up to 145%, Treasury Secretary Scott Bessent said on
Wednesday.
Bessent said under questioning from Democratic
Representative Ayanna Pressley at a House of Representatives
Financial Services Committee hearing that those exemptions were
under consideration. Pressley, of Massachusetts, noted that more
than 3.5 million babies are born annually and almost all
strollers are made in China. "Now that cost is going up," she
said.
In 2018, the Trump administration exempted some products
produced in China from 25% tariffs including bicycle helmets and
child-safety furniture such as car seats and playpens. However,
car seat component parts, cribs, bassinets, diaper bags and
wooden safety gates were not exempted.
Chris Peterson, the CEO of Newell Brands ( NWL ), the maker
of Graco strollers, car seats and other children's goods, said
last week on an earnings call that approximately 97% of baby
strollers and 87% of baby car seats in the U.S. are sourced from
China. The company has hiked prices of imported baby gear
products by about 20% because of tariffs.
Peterson said the company has not priced in the latest 125%
tariff hike and has temporarily halted shipments from China as
it sells a few months of inventory.
"At some point, we will begin to run out of inventory.
Retailers will begin to run out of inventory and we will turn
back on reordering from China," he said. "When that happens,
because the whole industry sources from China, we would expect
that we and the rest of the industry will take additional
pricing to offset the tariff cost."