'Comes out of consumers’ pockets': Here’s how much more you’ll pay under Trump’s tariffs

26 November 2024

During her 2024 presidential campaign, Vice President Kamala Harris repeatedly warned that if Donald Trump won the election and followed through on his proposals for new tariffs, it would amount to a major "sales tax on the American people."

Having narrowly defeated Harris, President-elect Trump is following through on his tariffs proposal.

On Monday, November 25, Trump promised to enact new tariffs as soon as his second term begins. Trump is calling for new 25% tariffs on all goods imported into the United States from Mexico and Canada. And for Chinese goods, Trump favors tariffs of up to 60%.

The Hill's Sylvan Lane reports, "Trump's threat comes days after he announced he would nominate investor Scott Bessent as his Treasury secretary. His selection makes Bessent a key player in implementing Trump trade's agenda and attempting to keep markets calm amid the expected disruption. The former president rattled financial markets and key U.S. trading partners throughout his first term with his tariff agenda."

Pymnts.com analyzes the likely results of these new tariffs in an article published in late November, predicting that prices on consumer goods are going to soar in the U.S.

Drawing on data from the National Retail Federation (NRF), Pymnts warns that "Americans could lose between $46 billion and $78 billion in spending power every year if the proposed levies on imports to the U.S. go into effect."

According to NRF expert Jonathan Gold, "Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices. A tariff is a tax paid by the U.S. importer, not a foreign country or the exporter. This tax ultimately comes out of consumers' pockets through higher prices."

Pymnts notes specific goods that are likely to soar in price.

Pymnts reports, "For example…. a $40 toaster oven could cost up to $12 more after the tariffs. A $50 pair of athletic shoes would climb to $59-$64 and a $2000 mattress and box spring set would wind up costing $2128-$2190."

Read Pymnts' full report at this link.

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