A new study from the National Retail Federation (NRF) revealed that former (and now future) President Trump’s plans to significantly increase tariffs, particularly on goods from China, would cost American consumers between $46 billion and $78 billion in spending power if they are implemented. For example, a $40 toaster oven would cost $48 to $52 after tariffs, while a $2,000 mattress and box spring set would end up costing $2,128 to $2,190.
“Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices,” said Jonathn Gold, VP of Supply Chain and Customs Policy at NRF in a statement. “A tariff is a tax paid by the U.S. importer, not a foreign country or the exporter. This tax ultimately comes out of consumers’’ pockets through higher prices.”
President-elect Trump has proposed a universal 10% to 20% tariff on imports from all foreign countries, with an additional 60% to 100% tariff on Chinese imports. The NRF study examined the impact of these increases on six product categories and the range of how much more consumers would pay for these products:
- Apparel: $13.9 to $24 billion;
- Toys: $8.8 to $14.2 billion
- Furniture: $8.5 to $13.1 billion;
- Household appliances: $6.4 to $10.9 billion;
- Footwear: $6.4 to $10.7 billion; and
- Travel goods: $2.2 to $3.9 billion.
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