Retailers, the NRF speak out against Trump tariff proposals
A new study shows that Americans could lose more than $50 billion in spending power each year under the proposed tariffs.
WASHINGTON – American consumers could lose between $46 billion and $78 billion in spending power each year if new tariffs on imports to the U.S. are implemented, according to a new study released by the National Retail Federation (NRF).
The study, “Estimated Impacts of Proposed Tariffs on Imports: Apparel, Toys, Furniture, Household Appliances, Footwear and Travel Goods,” examines how former President Donald Trump’s tariff proposals – a universal 10-20 percent tariff on imports from all foreign countries and an additional 60-100 percent tariff on imports specifically from China – would impact six consumer products categories. Categories included in the study include apparel, toys, furniture, household appliances, footwear and travel goods.
“Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices,” said Jonathan Gold, NRF vice president of supply chain and customs policy. “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.”
While some U.S. manufacturers may benefit from the tariffs, the NRF said gains to U.S. producers and the Treasury from tariff revenue “do not outweigh overall losses to consumers.” According to the NRF, after the tariffs example, the price of a $50 pair of athletic shoes would jump to $59-$64 and a $2,000 mattress and box spring set would end up costing $2,128-$2,190.
Other key findings from the study include the following:
- The proposed tariffs on the six product categories would reduce American consumers’ spending power by $46 billion to $78 billion every year the tariffs are in place.
- The proposed tariffs would have a “significant and detrimental impact” on the costs of a wide range of consumer products sold in the U.S., particularly on products where China is the major supplier.
- 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.”
- 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.
- Based on current trade, average tariff rates for all categories examined would exceed 50 percent in the extreme tariff scenario, up in most cases from single or low double digits.
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