President-elect Donald Trump has promised a boss climbing of the nation rates.
Trump has proposed tariffs of 60% to 100% on Chinese goods, and a 10% to 20% tax on all imports from all US trading partners.
Economists predict that tariffs of this magnitude would increase Prices paid by U.S. buyers because importers typically pass some of the cost of these higher taxes on to consumers.
Trump’s tariffs would cost the average U.S. household about $2,600 a year, according to estimates. Peterson Institute for International Economics.
Some products would likely see a much larger price increase than others, experts told ABC News, pointing to items like electronics and toys that rely on imports.
“This will directly affect people’s pocketbooks,” Rob Handfield, a professor of operations and supply chain management at North Carolina State University, told ABC News.
In response to ABC News’ request for comment, the Trump transition team expressed concern about rising prices as a result of his tariff proposals.
“During his first term, President Trump imposed tariffs China it created jobs, encouraged investment and did not cause inflation. “President Trump will work quickly to fix and restore an economy that puts American workers first by restructuring American jobs, reducing inflation, raising real wages, lowering taxes, cutting regulations and unleashing American energy,” Karoline Leavitt, spokeswoman for the transition team, told ABC News. -i in a statement.
Here’s what to know about the products most likely to be affected by Trump’s tariffs:
electronics
Smartphones, tablets and laptops are among the range of electronics that would see prices rise as a result of the tariffs, experts said. Video cameras, headphones and video game consoles would also be affected.
“Electronics are basically ubiquitous,” Raymond Robertson, professor of business and public policy at Texas A.&M University, told ABC News. “I don’t know how this wouldn’t be incredibly disruptive.”
Laptop and tablet prices could rise by up to 46%, while smartphone prices could rise by 26%, according to a study published last month. Consumer Technology Associationtrade group representing technology companies.
Many of these products are imported from China, which would face the harshest tariffs under Trump’s proposal, Handfield said. Since Trump also plans to impose tariffs on all imported goods, manufacturers would not be able to avoid the tariffs by moving production to other countries, he added.
Imports account for about 90% of electronic video and audio equipment sold to US consumers US Bureau of Economic Analysis It was discovered in 2017. Meanwhile, BEA reports that 88% of electronic computers and 78% of small electrical appliances are imported.
“Electronics prices would definitely go up,” Handfield said.
clothes
Jeans, T-shirts, sweaters and many other items of clothing will see their prices rise if Trump’s tariffs go into effect, experts say.
The US imports more than 80% of the clothing items that retailers offer, US Bureau of Economic Analysis last year’s data showed.
For decades, the U.S. has relied on clothing manufacturers from China, Bangladesh, Vietnam and other low-cost foreign markets, said Jason Miller, professor of supply chain management at Michigan State University.
“Obviously, and not surprisingly, the clothing is heavily imported,” Miller said.
Workers stock shelves at a warehouse in Baltimore, Maryland, on April 9, 2024.
Nathan Howard/Bloomberg via Getty Images, FILE
The price of a range of 500 garments ranging from swimwear to gloves to baby clothes could rise by 20% in response to potential tariffs, according to a study earlier this month. National Retail Federationtrade association representing retailers.
After the proposed tariffs, a $50 women’s cotton sweater could cost consumers $60, and the price of men’s jeans could rise from $80 to $96, the NRF found.
the toys
Dolls, stuffed animals and board games are among the toy groups most vulnerable to tariff-related price increases, experts say.
Imports account for about 90% of the toys and dolls sold to US consumers. US Bureau of Economic Analysis 2017 data showed.
Major US toymakers are “very, very dependent on China,” Handfield said. “Almost all toys are manufactured in Asia.”
The price of toys could increase by 55%, accounting for about $14 billion in lost spending power for US consumers, the NRF found.
The price of a $50 tricycle could increase by $28 more, while a stuffed animal could increase from $17 to $27.
Economists face challenges in predicting the exact increase in prices, as it is not clear whether companies involved in the supply chain of products such as toys will absorb some of the additional cost by forgoing some of the profits or pass the entire cost on to customers. Miller said.
Current academic research, however, suggests that many companies will pass the full cost of the tariffs on to the consumer.
“It’s hard to predict an exact price increase,” Miller said. “But it will be inflationary.”
