WASHINGTON: President-elect Donald Trump has vowed to raise tariffs on imports, including a proposed 60% to 100% tariff on Chinese goods and a 10% to 20% tax on products from all other trading partners.
Trump has suggested tariffs of between 60% and 100% on Chinese products, and a tax of between 10% and 20% on every product imported from all American trading partners, according to US media.
Analysts extensively forecast that tariffs of this scale would increase prices paid by US customers, since importers naturally pass along a share of the cost of those higher taxes to consumers.
The Peterson Institute for International Economics estimated that Trump’s tariffs would cost the average American household around $2,600 annually.
ABC cited various experts as claiming that some goods would likely undergo much more significant price increases than others. The experts were of the view that it would affect electronics and toys that rely mostly on imports.
ABC cited Rob Handfield, a professor at North Carolina State University as saying, “This will directly impact Americans’ pocketbooks,”.
However, some section of American media reported that the Trump transition team rejected concern regarding the potential price hike as a result of his tariff suggestion.
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Karoline Leavitt, a spokesperson for the transition team told the US media that Donald Trump will make effort to fix and restore the country’s economy. She said that the step of Trump will decrease the inflation, increase wages, and cut taxes to improve the country’s economy. She claimed that Trump instituted tariffs against Beijing that created jobs, as well as resulted in no inflation.
Here’s what to know regarding which products will be most impacted by Trump’s tariffs:
Electronics
Smartphones, laptops and tablets are among the collection of electronics that would see price hike as a result of tariffs, experts predicted. Similarly, video cameras, headphones and video game consoles would also be impacted.
ABC news cited Raymond Robertson, a professor at Texas A&M University as saying electronics are basically universal, adding he did know how this wouldn’t be incredibly disruptive.”
According to a study published in October by the Consumer Technology Association, prices of laptops and tablets could increase as much as 46%, while smartphone prices could jump around 26%.
Imports account for about 90% of video and audio electronic equipment sold to American consumers, according to the US Bureau of Economic Analysis. While 88% of electronic computers and 78% of small electric appliances are imported, according to the BEA said. ABC reported that the prices of electronics would definitely increase.
Clothes
T-shirts, Jeans, sweatshirts and a host of other apparel items are set to increase in price if Donald Trump’s tariffs take effect, according to experts.
US Bureau of Economic Analysis data last year stated that the US imports over 80% of clothing goods offered up by retailers.
For several decades, the US has mostly relied on apparel manufacturers in China, Vietnam and other low-cost markets abroad, Jason Miller, a professor of supply-chain management at Michigan State University said.
Miller stated that obviously, and not surprisingly, attire is imported.
The price of a set of 500 attire goods ranging from swimwear to gloves to baby clothes could increase as much as 20% in reply to the potential tariffs, the National Retail Federation observed.
Following the proposed tariffs, a $50 woman’s cotton sweater could cost customers as much as $60 while the price of men’s jeans could increase from $80 to $96, the NRF reported.
Miller further said that it is very difficult to predict the exact price increase but it will be inflationary, the ABC reported.
