People shop at the Abercrombie & Fitch store in Midtown Manhattan on October 24, 2024 in New York City.
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Former U.S. President Donald Trump’s sweeping tariff proposal could cause prices to soar on clothing, toys, furniture, appliances, footwear and travel items. national retail federation.
The study, released on the eve of Election Day, adds to a growing body of economic and industry analysis of the inflationary impact of the Republican presidential candidates’ hardline trade policies.
Trump said he would impose 10% or 20% tariffs on all imported products. He also proposed setting China’s tax rate between 60% and 100%.
In both cases, the NRF found, the impact of Trump’s tariffs would result in “dramatic” double-digit percentage price increases in nearly all six retail categories reviewed by the trade group.
For example, the analysis found that clothing costs could rise by 12.5% to 20.6%. This means that an $80 pair of men’s jeans will cost between $90 and $96. A $100 jacket? Fees range from $112 to $121.
These new prices will squeeze consumer budgets, especially for lower-income households, who spend three times more on clothing each month than higher-income households. Bureau of Labor Statistics.
The report found that toys may see the biggest price increases: 36.3% to 55.8%. The price of a $200 crib will also increase to between $213 and $219.
At a macro level, rising prices also weaken consumer spending. The report found that if Trump imposed both general tariffs and particularly high China tariffs, more expensive retail goods would result in a $46 billion loss in purchasing power.
“The broad tariffs proposed by former President Trump would result in significant tax increases on American households as they pay more for all imports, thereby eroding their purchasing power and severely impacting their spending and the overall economy,” Chief Economist explain.
The report did not take into account Trump’s new proposal announced on Monday to impose 25% tariffs on Mexico if it does not implement stricter border controls. .
Vice President Kamala Harris has capitalized on economic criticism of Trump’s broad tariff plan, calling it a “Trump sales tax” on American consumers. Instead, she favors a more focused approach to carrying out her duties.
But many voters responded favorably to Trump’s tariff proposals, arguing that years of free trade had devastated factory towns across the United States.
Yet Trump’s first-term tariffs, including on foreign metals and washing machines, failed to boost job totals in related industries, independents say working papers established.
“If higher tariffs are imposed on these imports from China, their production will shift to other less developed countries,” said Mary Lovely, a senior fellow at the Peterson Institute for International Economics.
Lovely said that given the relatively high wages in the United States, “these industries are unlikely to create many jobs.”
That means Americans won’t see more jobs, but they will see higher prices.
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