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U.S. retailers’ alliance to foreign suppliers may potentially lead to higher prices for a range of products, thanks to Donald Trump winning the White House and his proposed import tariffs, CBS News reports.
In a report released by the National Retail Federation (NRF) on Nov. 4, American consumers can expect to lose anywhere between $46 billion and $78 billion in spending power on products such as apparel, toys, furniture, household appliances, footwear and travel goods over the next few years because of the tariffs. NRF Vice President of Supply Chain and Customs Policy Jonathan Gold released a statement explaining what a tariff is and how it affects companies. “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,” Gold said.
“Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices.”
However, Trump claims tariffs will benefit the U.S economy in numerous ways like encouraging countries to negotiate more successful trade deals and limiting other counties from “dumping” their products in the States at under-market prices, according to USA Today. Another reason is to motivate nations to decrease their tariffs on shipments into their countries from the U.S.
For the time being, it is unclear on the timeline of when or if the incoming administration will begin to tighten tariffs as the process requires legislation to increase the levies, which could take up to a year.
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Source: Black Enterprise
