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By
Reuters API
Published
Jun 24, 2019
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Trump China tariffs could cost billions for consumers - NRF study

By
Reuters API
Published
Jun 24, 2019

If the United States were to impose tariffs on another $300 billion worth of Chinese goods, it would cost U.S. consumers $12.2 billion (9.6 billion pounds) more for their apparels, footwear, toys, and household appliances, the National Retail Federation (NRF) said on Friday.


The tariffs would result in consumers paying another $4.4 billion on apparel, and $2.5 billion on footwear - Reuters


The tariffs would result in consumers paying another $4.4 billion on apparel, $2.5 billion on footwear, $3.7 billion for toys and $1.6 billion for household appliances, the retail trade group said, based on a study it had commissioned.

“It would be impossible for all market participants in our industry to simultaneously move sourcing to other countries. The capacity does not exist,” David French, NRF’s senior vice president of government relations, said in a statement. “In the short term, retailers would be forced to continue to use Chinese suppliers and pass on higher costs to their customers.”

Many retailers including J.C. Penney Co and Macy’s Inc have opposed more tariffs on Chinese goods and warned of higher prices for domestic consumers.

Separately, on Friday, the United States Fashion Industry Association (USFIA), which represents brands, retailers, importers and wholesalers based in the United States, estimated that additional tariffs on clothing and home textiles would cost American consumers $4.9 billion per year.

“We can conservatively estimate an increase in retail prices for products still made in China...That means a family of four would pay an additional $60 per year just on clothing,” USFIA said.

“The fact remains that for many (fashion brands and retailers), China remains the No. 1 supplier in the world, with no realistic options for other sourcing destinations that could replace China,” it added

President Donald Trump has threatened to extend tariffs on another $300 billion worth of goods imported from China. Trump and Chinese President Xi Jinping are to meet on the sidelines of the Group of 20 meeting in Japan at the end of next week to discuss the trade issues.
 

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