BOSTON – President-elect Donald Trump has promised that impose competitive rates once he comes to power. What impact would that have on your wallet?
What tariffs is Trump proposing?
While campaigning, Trump proposed tariffs of up to 60% on Chinese goods. He also proposed broader tariffs of 10% to 20% on all imports.
Trump has not released many additional details about the proposals.
The president-elect has also promised retaliatory tariffs on any country that taxes U.S. goods.
What impact would tariffs have?
The National Retail Federation said that could leave shoppers paying higher prices. American companies will be forced to pay more for goods, a price that could trickle down to consumers.
For example, the organization estimates that a new toaster will soon cost €8 to €12 more. Running shoes can range from $50 to almost $60. The price of a $2,000 mattress and box spring could increase by $100 to $200.
“Such tariffs would have a significant impact on the costs of a wide range of consumer products sold in the United States,” the National Retail Federation said in its report condemning the proposals.
The report predicts the rates could add about $7,600 in additional costs per household annually.
John Eagles of Retail Consulting Partners said he doesn’t believe Trump will move forward with tariffs that would increase costs.
“I don’t see a scenario in which President-elect Trump negotiates a deal that only affects consumers,” he said.
When can the rates come into effect?
In 2018, Trump imposed similar tariffs on China. They retaliated with their own tariffs on American goods such as aluminum and automobiles, costs that consumers paid for.
During an earnings call in September, AutoZone’s CEO promised the same, saying that if the tariffs were implemented, their customers would pay the price.
Inu Manak, a trade policy fellow at the Council on Foreign Relations, told CBS MoneyWatch that the first wave of tariffs could be implemented within months of Trump taking office.
Laura Haefeli
