A report by the National Retail Federation (NRF) warns that former President Donald Trump's proposed tariffs could cost U.S. consumers up to $78 billion annually by increasing the prices of everyday goods. Trump's plan includes tariffs of 10% to 20% on all imports and 60% to 100% on Chinese goods, intended to protect domestic industries and generate revenue to fund new tax cuts. However, the NRF report suggests these tariffs would primarily burden American shoppers, leading to significant price hikes across six major consumer categories: clothing, toys, furniture, household appliances, footwear, and travel goods.
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The tariffs could add between $362 and $624 to annual household expenses. Items, such as a $2,000 mattress and box spring set, could increase by $128 to $190.
Jonathan Gold, an NRF vice president, highlighted that the additional costs would likely fall on consumers, as retailers depend on imports to keep prices low. Gold stressed that tariffs act as taxes on U.S. importers, which in turn raises retail prices for American buyers, diminishing consumer purchasing power.
Source: www.thefiscaltimes.com