One of the cornerstones of President-elect Donald Trump’s reelection campaign of 2024 was his promise to implement tariffs — that is, taxes levied upon goods imported to the United States from foreign nations — at a level of 10% to 20% for most, and a whopping 60% on goods from China, per a recent report from Business Insider. Trump’s assertion is that the tariffs would provide a boost to American manufacturing as well as a tax on other countries.
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American retailers, however, aren’t so sure.
When Trump implemented tariffs in his first administration, foreign importers, as a consequence, raised their prices and charged more for their imports, which then in turn drove American retailers to raise their prices to make up for the increased costs of the imports they received. As a result, American retailers are now bracing for the increased cost of imports, and many have announced plans to raise their prices if Trump’s tariffs indeed happen — just as they did in the first Trump administration. If history repeats itself, many retail items will likely slip out of reach of middle-class budgets.
According to the Consumer Technology Association, Trump’s proposed tariffs would hike laptop and tablet costs by a shocking 46% and smartphones by 26%. Given that those products are already rather expensive, a 26% to 46% price increase would push those items outside the budget of many middle-class shoppers. Additionally, video game consoles are projected to increase in price by 40% and TVs by 9%.
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Nearly every car — including those made in America — are built with auto parts made in China, Europe and Mexico. Because of this, car shoppers can expect cars across the board, even those made in the U.S., to increase dramatically in price.
As Business Insider reported, retailers are expecting home appliance costs to increase, just as they did in 2019, due to tariffs. As of this writing, items such as refrigerators, dishwashers and blenders, items which can be very pricey already, are expected to increase by 19%.
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This article originally appeared on GOBankingRates.com: 3 Things the Middle Class Won’t Be Able To Afford If Trump Imposes Tariffs in 2025
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