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Anyone watching the news after the presidential election has likely heard the word most often associated with President-elect Donald Trump: “Tariffs.” Tariffs are taxes levied on foreign goods imported into the United States from other countries, and President Trump has promised to impose even tougher tariffs on foreign countries during his campaign to retake the White House and after he wins.
According to a report from the National Retail Federation (NRF), President Trump will specifically impose a universal tariff of about 10% to 20% on all foreign imports, with the exception of China, which will receive additional tariffs of 60% to 100%. he declared. .
Some U.S. manufacturers could benefit from tariffs on foreign companies. However, many consumers may be adversely affected. Tariffs on foreign manufacturers force these companies to raise prices. As a result, U.S. companies that buy those products will be forced to raise prices to offset the newly increased costs.
As a result, American consumers will end up paying much more than they used to.
This type of price increase for American shoppers occurred in 2019, when President Trump imposed tariffs on foreign manufacturers, causing prices for all large appliances (washers, dryers, dishwashers, etc.) to soar. That’s true. A recent study by the NRF predicts that similar price increases will occur in 2025 if President Trump’s tariff plan passes.
Studies show Americans will pay $13.9 billion to $24 billion more than usual for clothing and $6.4 billion to $10.7 billion more for footwear. Consumers will be burdened with an additional $6.4 billion to $10.9 billion in price increases for consumer electronics, which were notorious for their price increases under the Trump administration.
The most shocking item on the list is toys, which will be affected by a 55.8% price increase, costing shoppers between $8.8 billion and $14.2 billion in additional costs. The tariffs would be “too large for U.S. retailers to absorb.” communicated to shoppers.
Overall, NRF predicts that if President Trump’s tariffs are implemented as he describes, the purchasing power of U.S. consumers could decrease by $46 billion to $78 billion each year until the tariffs are cancelled. are.
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