Expand / Collapse search
☰

What happens if President-Elect Trump imposes new tariffs?

By
Published  November 22, 2024 5:12pm CST
News
FOX 26 Houston

What happens if President-Elect Trump imposes new tariffs?

President-elect Trump is set to introduce heavy tariffs on imported goods, continuing from his first term and President Biden's tenure. With proposed taxes of up to 60% on some imports, consumers may face higher prices on items like clothes and electronics. Retail giants and experts warn of the cost to shoppers, and question if these tariffs will really help U.S. manufacturing. Families could see expenses increase by about $2600 a year if these tariffs are put into place.

The Brief

    • President-elect Trump vows to implement substantial tariffs on imports, building upon the $80 billion worth established during his first term and broadly retained by President Biden.
    • The tariff plan, touted as a key economic strategy, may impose a 10-20% tax on all imports and up to 60% on goods from China, aiming to boost U.S. manufacturing.
    • Warnings from major retailers and trade experts highlight the direct impact on consumer prices and question the effectiveness of tariffs as a tool for manufacturing growth, with anticipated costs to households estimated at an additional $2600 annually.

President-elect Trump has promised significant tariffs on imported goods, when he returns to the White House. In his first-term, he levied about $80 billion worth of tariffs, ostensibly, to protect domestic business, and President Biden has kept most of them in place. This time, the new Trump White House plans to go much further, and there is mixed-reaction to what may happen, and who will pay the price if it happens.

 From the campaign stump, President Trump made his promise of new tariffs a centerpiece of his economic plan to raise money for the government and to encourage U.S. manufacturing by levying a 10% to 20% tax on all imports, and up to 60% on products coming from China. "The most beautiful word in the dictionary, to me, is 'tariff'," he said.

Nick Klein works for the OEC Group, which provides shipping logistics from Asia to North America, via the Port of Houston and others. He says consumers bear the brunt of every tariff, new and old, "If Trump has a tariff and the product stays in China, it's going to go right to the consumer's pocket."

Both Walmart and Lowes have warned that customers should expect rising prices in the event of the tariffs that Trump promises, as both retailers depend, in part, on imported goods. Specifically, electronics, clothes, toys and groceries could see increases, as higher costs are, likely, passed-on to consumers.

The National Retail Federation says apparel costs could rise by as much as 20%, while the Consumer Technology Association expects the price for some consumer electronics could jump nearly 50%.

Get news, weather and so much more on the new FOX LOCAL app 

The broader goal for the proposed tariffs is to encourage U.S. manufacturing growth, but there is little evidence it's an effective tool, primarily because of the extra cost of making things here. Trade experts say, for now, most manufacturing has already moved where it's most practical. 

"You can't just open overnight a factory and have workers that aren't trained in that skill, because you want it. It's not possible," says Klein, "I'm hoping that some of that was campaign rhetoric (and) I hope there's smart people around the president in certain industries that can voice that to him."

DOGE reportedly considers mobile tax-filing app to simplify US tax process

Tariffs are not new. Many contemporary presidents have imposed them, in some fashion. As for this latest discussion, general estimates suggest they will cost the average household about $2600, more, a year. Those higher costs could be seen 60-to-90 days after the decision is made.

NewsMoney