Proposed Tariffs Could Raise Consumer Prices

A recent Harris poll reveals that about two-thirds of Americans believe Donald Trump's proposed tariffs will lead to increased consumer prices, with 69% anticipating significant impacts on affordability. Trump's administration plans to impose tariffs ranging from 10% to 20% on all imports and up to 100% on Chinese goods, aiming to boost domestic manufacturing. However, economists warn that these tariffs could inflate prices by as much as $2,400 per person annually, exacerbating inflation and potentially reducing consumer spending power, which constitutes 70% of the U.S. economy. The National Retail Federation estimates that Americans could lose between $46 billion and $78 billion in spending power annually due to these tariffs, with low-income families facing the hardest hit. Despite potential benefits for certain American manufacturers, the overall burden of tariffs would likely fall on consumers, leading to higher prices on everyday goods. Walmart's CFO has indicated that the retail giant may need to raise prices if the tariffs are enacted, contradicting their commitment to low pricing.