"China's unfair trade practices must be addressed, but as this study shows, tariffs aren't the answer and will punish U.S. consumers in the form of higher prices."Matthew Shay
NRF President and CEO
WASHINGTON – The Trump administration's proposed tariffs on TVs from China would increase the price Americans pay for TVs, costing U.S. consumers an estimated $711 million over the next year, according to a new study commissioned by the National Retail Federation (NRF) and Consumer Technology Association (CTA).
"China's unfair trade practices must be addressed, but as this study shows, tariffs aren't the answer and will punish U.S. consumers in the form of higher prices," said NRF president and CEO Matthew Shay. "If these tariffs take effect, they will force American families to pay more for TVs and other products. We urge the administration to avoid taxing Americans through tariffs and instead work with our like-minded trading partners and develop a serious, long-term strategy to pressure China to play by the rules."
The study looks at the estimated consumer impact of 25 percent tariffs on imports of TVs and other product categories from China, and finds the proposed tariffs would increase prices on TVs from China by 23 percent and increase prices for all TVs by four percent. A TV made in China that costs $250 today would cost $308 after the tariffs are applied, and one that costs $500 today would cost $615 after the tariffs are applied.
"These proposed tariffs are bad for the economy, businesses and American consumers," said Gary Shapiro, CEO and president, CTA. "For TVs, just one of the 1,300 products on the administration's list, American pocketbooks will suffer. Now that China has expressed some willingness to open its market and strengthen protection of intellectual property, the Trump administration should immediately initiate negotiations."
The full study can be found here.
NRF is the world’s largest retail trade association, representing discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and internet retailers from the United States and more than 45 countries. Retail is the nation’s largest private-sector employer, supporting one in four U.S. jobs — 42 million working Americans. Contributing $2.6 trillion to annual GDP, retail is a daily barometer for the nation’s economy.