Import tariffs proposed by US presidential candidate Donald Trump, especially on China, would deplete American shoppers of US$46 billion to US$78 billion in their annual “spending power” on six types of goods, a retail group said in a study that pointed to faster inflation.
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Consumers in the United States would pay between US$13.9 billion to US$24 billion more for apparel, between US$8.8 billion to US$14.2 billion more for toys and as much as US$13.1 billion more for furniture, the National Retail Federation said in a study released on Monday.
And according to Lynn Song, chief economist for Greater China at ING, the tariffs would fuel inflation in the US by raising consumer prices, while Trump’s pledged tax cuts and increased fiscal spending would add to it.
The average rate of inflation in the US hit as high as 8 per cent in 2022 followed by 4.1 per cent in 2023.
“If new tariffs are fully passed through to consumers, Trump’s tariff proposals would substantially raise the costs of imported goods, and ultimately prices for everyday items,” the National Retail Federation said.
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Republican candidate and former president Trump has proposed tariffs of between 60 and 100 per cent on Chinese imports, and universal tariffs of between 10 and 20 per cent on all imports.