Americans stand to lose between $46 billion and $78 billion in spending power each year on products including apparel, toys, furniture, household appliances, footwear and travel goods due to the new tariffs, the National Retail Federation stated in
findings released Monday.
"Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices," NRF Vice President of Supply Chain and Customs Policy Jonathan Gold
said 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."
For example, a $40 toaster oven would retail for $48 to $52 after the tariffs, while a $50 pair of running shoes would jump to to $59 to $64, according to the industry trade group. A $2,000 mattress and box spring set would cost $2,128 to $2,190, the NRF said.
During President-elect Trump's first term in office, his administration imposed tariffs of up to 25% on more than $360 billion in products from China. President Joe Biden's White House kept most of those tariffs and added more onto goods including Chinese electric cars and microchips.
Now, Trump has said he plans to impose a 60% tax on goods from China and a 10% to 20% levy on all of the $3 trillion in foreign goods the U.S. imports annually. Such sweeping tariffs would reignite inflation, as they would mostly be paid by U.S. consumers, Treasury Secretary Janet Yellen has warned, offering a general view widely
shared by other economists on both sides of the political aisle.
