Televisions will cost U.S. consumers millions more each year if President TrumpDonald TrumpOvernight Defense & National Security — The Pentagon's deadly mistake Overnight Energy & Environment — Presented by Climate Power — Interior returns BLM HQ to Washington France pulls ambassadors to US, Australia in protest of submarine deal MORE slaps billions of dollars in proposed tariffs on China, a new study shows.
The National Retail Federation (NRF) and the Consumer Technology Association (CTA) examined the effects of 25 percent tariffs on imports of TVs and other products found that Americans would pay an estimated $711 million over the next year on televisions.
"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 Matthew Shay, president and CEO of the NRF.
“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,” Shay said.
The study found that the proposed tariffs would increase TV prices from Chinese manufacturers by 23 percent and increase prices for all TVs by 4.1 percent.
The tariffs will lead to U.S. consumers cutting back on purchases of TVs by 7.8 percent.
The net effect on the economy is a hit of $322 million, the study showed.
A TV made in China that costs $250 would cost $308 after the tariffs are applied, and one that costs $500 today would cost $615 after the tariffs, the study showed.
Trump is threatening to slap tariffs of at least $50 billion on more than 1,300 Chinese imports.
"Trump administration officials have stated that the tariffs will ultimately have little if any negative impacts on American consumers because other sources of supply are available to substitute for Chinese-made goods that are affected by the tariffs," the report said.
Retailers and the technology industry have been out front in opposing Trump’s proposed tariffs, arguing that U.S. consumers and the economy will suffer if the tariffs are implemented.
“These proposed tariffs are bad for businesses, American consumers and the economy,” said Gary Shapiro, CEO and president of CTA.
“For TVs, just one of the 1,300 products on the administration’s list, American pocketbooks will suffer,” Shapiro said.
“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 study also found that the tariffs would hurt buyers of computer monitors, batteries and printer ink and cartridges.