Tariffs Will Hit Consumers Hard
Today the Retail Industry Leaders Association (RILA) expressed alarm over the announcement that President Donald Trump has instructed the United States Trade Representative to consider $100 billion in additional tariffs on Chinese imports. Earlier this week retailers warned that $50 billion in new tariffs that hit appliances, TVs and other consumer products would drive up the costs for those goods for American families. Hun Quach, vice president of international trade for RILA, said tripling that figure to $150 billion would expose every American family to higher bills.
Kevin Price, Host of the nationally syndicated show, the Price of Business and Editor at Large of USA Business Radio, said “these type of policies do not happen in a vacuum. It is clear that there is a cost to such actions — in this case, $150 billion. People need to be aware that the companies that send goods to the United States will not pay a penny of these tariffs. It will be absorbed, entirely, by US consumers. It is nothing more than a tax — the kind of hit on the economy that can devastate our recovery and long term economic growth.”
In a statement, Hun Quach of RILA noted:
“Tariffs on over $150 billion of imports will have an impact on the budgets of every American family. If the Administration follows through on this threat, American families should prepare to pay more for summer clothes, shoes, back to school gear, home décor, holiday shopping—this will hit every season and every category. Tariffs of this magnitude will not only negate any increase from tax reform in worker’s paychecks, but the combination of new taxes on consumers and retaliatory taxes on American exports has the potential to both depress consumer spending and slow down the economy.”
“As we have stated before, retailers fully support the Trump administration’s efforts to hold China accountable, but a trade war that puts American families in the crossfire is not in the best interest of anyone. We strongly urge the administration to keep American consumers in mind as they negotiate with our trading partners to find a resolution.”
According to a statement, “RILA is the trade association of the world’s largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs, and more than 100,000 stores, manufacturing facilities, and distribution centers domestically and abroad.”
There are not many modern stories about major protectionist measures and their impact. That is simply because economies have learned enough from the few times we have pursued them to know how dangerous they are. Representatives from every industry — including those who should supposedly “benefit” from protectionist measures have condemned the policies because of their long term implications.
