Potential Impact of Proposed Tariffs on U.S. Shoppers

(Reuters) – U.S. shoppers could lose up to $78 billion in annual spending power if presidential candidate Donald Trump's new tariffs proposal on imports is implemented, according to a study from the National Retail Federation (NRF) released on Monday.

The study indicated that the proposed tariffs would affect various consumer product categories, including apparel, toys, furniture, appliances, footwear, and travel goods, with particular emphasis on items predominantly supplied by China.

Consumers have become more frugal in recent years, seeking to limit expenses by reducing non-essential spending, leading to a decline in sales for retailers and consumer goods companies in the United States.

> “Retailers rely heavily on imported products and manufacturing components to offer customers a variety of products at affordable prices,” said Jonathan Gold, NRF's vice president of supply chain and customs policy.

However, the implementation of import tariffs would exacerbate financial strain on low-income families, as these tariffs—taxes imposed on U.S. importers—ultimately result in higher prices for consumers, the report stated.

Last month, NRF projected that holiday sales in America could grow by up to 3.5%, reaching $989 billion from November to December, marking the slowest growth in six years.

Trump proposed a 10% universal tariff on all imports during an interview with the Washington Post in August last year and suggested in February that additional tariffs of 60% to 100% on imports from China could be enforced.