A study estimates the cost to consumers could be up to $80 billion a year
of ConsumerAffairs
Since his election victory on Nov. 5, President-elect Trump has shown no signs of backing away from his proposed tariffs on imported goods. But retailers and some economists are beginning to question the costs of that policy.
The National Retail Federation has cited a study that suggests the tariffs could cost American consumers an extra $80 billion a year. Thats because in most cases, retailers would pass some or all of the extra costs on to consumers.
In an interview with Bloomberg News, NRF CEO Matthew Shay said that could translate into $2,500 to $7,500 of extra expense for American households.
There are very significant consequences if the president-elect goes through with the things he said about imposing mandatory tariffs on all imported goods by 10% and Chinese imports by 60%, Shay said.
The NRF study looked at the tariff impact on a limited number of categories and found significant costs increases on apparel, toys, furniture, household appliances, footwear and travel goods.
Key findings
Key findings from the study include:
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The proposed tariffs on the six product categories alone would reduce American consumers spending power by $46 billion to $78 billion every year the tariffs are in place.
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The proposed tariffs would have a significant and detrimental impact on the costs of a wide range of consumer products sold in the United States, particularly on products where China is the major supplier.
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The increased costs as a result of the proposed tariffs would be too large for U.S. retailers to absorb and would result in prices higher than many consumers would be willing or able to pay.
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Consumers would pay $13.9 billion to $24 billion more for apparel; $8.8 billion to $14.2 billion more for toys; $8.5 billion to $13.1 billion more for furniture; $6.4 billion to $10.9 billion more for household appliances; $6.4 billion to $10.7 billion more for footwear, and $2.2 billion to $3.9 billion more for travel goods.
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For all categories examined, total average tariffs would exceed 50% in the extreme tariff scenario, up in most cases from single or low double digits currently.
Trump has proposed the tariffs as a way to encourage Americans to purchase more products produced in the U.S., to support American jobs.
But even Trump insider Elon Musk has voiced concerns about the inflationary impact. In an appearance on the Joe Rogan podcast, Musk conceded that bringing jobs back to the U.S. cant be accomplished overnight.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-11-22 16:10:08
