Business, Freight News

Trump Tariffs Could Cost Consumers $79B

[ November 15, 2024   //   Gary G Burrows ]

Americans could face a loss of US$46 billion to US$78 billion in spending power each year if newly re-elected President Donald Trump makes good on his promise of new tariffs on imports, according to a recent study by the National Retail Federation.
Trump’s proposals include a 10 percent to 20 percent tariff on imports from all countries, and an audacious 60 percent to 100 percent tariff specifically targeting China.
“Retailers rely heavily on imported products to offer a variety of goods at affordable prices,” said Jonathan Gold, NRF’s vice president of supply chain and customs policy, in a statement.
In reality, theses tariffs function as a tax paid by U.S. importers, which inevitably trickles down to consumers through higher prices, partly because the tariffs would be too large for retailers to absorb.
The implications could make buying everyday items more difficult, the NRF said. A US$40 toaster oven could leap to US$52, while a pair of US$50 athletic shoes might jump to US$64. The increases would hit low-income families the hardest, NRF says, further straining their budgets.
The proposed tariffs would drastically inflate consumer costs, pushing spending on apparel up by US$13.9 billion to US$24 billion, NRF said. Companies such as Levi’s, Nike and Patagonia, which source a portion of their products from countries like Mexico, may have no choice but to pass those costs onto consumers, the study reports.
Toys could jump up by US$8.8 billion to US$14.2 billion, and other categories, such as furniture, household appliances, footwear, and travel goods would all also face higher prices.
With average tariff rates potentially exceeding 50 percent under these scenarios, the impact on everyday American shoppers could be profound. While some U.S. manufacturers may stand to gain, the impact on consumer wallets would be “detrimental,” the NRF said.

Tags: Donald Trump