Trump’s proposed tariffs: what consumer products could be impacted?

President-elect Trump has campaigned for the use of tariffs as a tool to provide more favorable terms of international trade and generate tax revenue, but they can affect the prices consumers pay for imported goods.

Trump’s policies include a 10% or 20% general tariff on all goods imported into the US, as well as a higher tariff of 60% on goods imported from China.He has also said he would impose 25% tariffs on goods from Canada and Mexico . At a press conference held on Monday, Trump and one of his nominees for a key Cabinet post announced that they want to: use tariffs to ensure mutual trade conditions with other countries.

Commerce Secretary nominee Howard Lutnick spoke at a press conference Monday with President-elect Trump and SoftBank CEO Masayoshi Son, who announced the Japanese company would invest $100 billion in the U.S. Lutnick answered a press question about the incoming administration’s tariff plans and explained , that Trump “has a very clear agenda for tariffs, and I think reciprocity is something that’s going to be a key theme for us.” is how you treat yourself.”

Trump weighed in and said: “Tariffs, properly used, which we shall do, and being reciprocated with other nations, will enrich our country. . . . I always say that tariff is the most beautiful word in the dictionary.”

TRUMP AND SOFTBANK CEO ANNOUNCE $100 BILLION INVESTMENTS TO CREATE 100,000 AMERICAN JOBS

President-elect Donald Trump has pledged to use tariffs as a key part of his economic agenda. (Donald Trump speaks at the 2024 Bitcoin Conference in Nashville, Tenn./Getty Images)

The president-elect also pushed back on concerns that the tariffs could raise consumer prices based on his experience in his first term, saying:

Uncertainty about how tariffs will be applied and their impact import taxes on consumers is likely to persist until the new administration takes office on January 20, 2025 and begins moving forward with its preferred policies.Based on some of Trump’s policy proposals from the presidential campaign, trade experts believe there could be a significant price impact on consumers. for

“Depending on the nature and the rate and how it’s structured, it could be quite substantial,” Clark Packard, the Cato Institute’s Herbert A. Researcher at the Stifel Center. consumer prices. “He talked about tariffs of 10% to 20% on all imports and then a special tariff of 60% on imports from China. If that were to go into effect, you know that would certainly raise consumer prices.”

“I’ve seen a study that shows, for example, that the price of a laptop will go up by about $350 and a smartphone will go up by about $200,” Packard said provide that about 90% of the tariff value is pushed back to consumers.”

TRUMP SAYS EXECUTIVE TO IMPOSE 25% TARIFF ON CANADA-MEXICAN GOODS TO GET INTO OFFICE.

Imported goods include finished goods as well as intermediate inputs used in products made by American firms. (Mario Tama/Getty Images/Getty Images)

Dr. Madhav Durbha, Group Vice President of CPG and Manufacturing at RELEX, told FOX Business, fresh produce The high tariffs from Mexico are highly vulnerable. Geographical and environmental constraints make it difficult to move production, and these tariffs will translate directly into higher prices for consumers in grocery stores.”

Durban added that the US imports pharmaceutical ingredients is used to manufacture everyday drugs from China, and that tariffs on such imports “could drive up drug costs for consumers and disrupt supply chains, causing ripple effects across the healthcare sector.”

He said that while many clothes and shoes brands have adopted a “China plus one” strategy to diversify production in countries such as Vietnam and Cambodia, China’s tariffs could increase the cost of these products for consumers.

MUSK SAYS TESLA’S MEXICAN FACTORY SET A STAGE FOR TRUMP’S TARIFF BAIL.

President-elect Donald Trump speaks alongside SoftBank Chairman and CEO Masayoshi Son at Mar-a-Lago in Palm Beach, Florida on Monday, Dec. 16. (Reuters/Brian Snyder/Reuters)

Durba added that a similar dynamic has played out with consumer electronics such as laptops and smartphones, which may experience price hikes or delays in availability despite higher production. moving from China countries such as India and Vietnam.

Packard also noted that imposing tariffs on imports would also affect American manufacturers and exporters, as foreign countries would likely impose retaliatory tariffs on US exports in response.

He explained that “40% to 50% of all imports are intermediate inputs that American companies use to make their products more globally competitive, and so when you start raising the price of the inputs that American companies buy abroad, you are going to make finished products less competitive in world markets.’

CREATE A FOX BUSINESS WITH A QUICK CLICK HERE!

“When you impose a tariff, you’re going to see retaliation from foreign governments,” Packard explained. obstacles when you go to export the product”.