Trump's tariffs will raise prices on TV for U.S. consumers
The National Retail Federation (NRF) and the Consumer Technology Association (CTA) examined the effects of 25 percent tariffs on imports of TVs and other products found that Americans would pay an estimated $711 million over the next year on televisions.
"China's unfair trade practices must be addressed, but as this study shows, tariffs aren't the answer and will punish U.S. consumers in the form of higher prices," said Matthew Shay, president and CEO of the NRF.
"We urge the administration to avoid taxing Americans through tariffs and instead work with our like-minded trading partners and develop a serious, long-term strategy to pressure China to play by the rules," Shay said.
The study found that the proposed tariffs would increase TV prices from Chinese manufacturers by 23 percent and increase prices for all TVs by 4.1 percent.
The tariffs will lead to U.S. consumers cutting back on purchases of TVs by 7.8 percent.
The net effect on the economy is a hit of $322 million, the study showed.
A TV made in China that costs $250 would cost $308 after the tariffs are applied, and one that costs $500 today would cost $615 after the tariffs, the study showed.
Trump is threatening to slap tariffs of at least $50 billion on more than 1,300 Chinese imports. ■