Modell's CEO on Trump's Border Tax: The Consumer is Going to Pay
Despite his overall support of President Trump, Modell's CEO Mitch Modell raised concerns about Trump’s border tax proposal because of its impact on American consumers.
Modell explained that most of the products at the sporting goods retailer are imported from countries such as China and Mexico so they would be impacted by the potential tax.
“98% of our goods are imported,” Modell told the Fox Business Network’s Stuart Varney.
According to Modell, American consumers would pay more for merchandise and even gas, if the tax is implemented.
“We don’t want a border tax, because, you know what, at the end of the day, the consumer is going to pay about 15% more for merchandise. They’re even talking about like 39 cents more for gas.”
Modell is part of lobbying efforts to oppose the border tax.
“I’m on the board of [the] National Retail Federation and I know there are big lobbying groups to help.”
Modell predicted Trump would have a change of heart once he understands the consequences of the tax for Americans.
“I think once President Trump understands the ramifications and the effect it has on the consumer, he’s going to do the right thing.”