(Reuters) -U.S. shoppers could lose up to $78 billion in annual spending power annually if presidential candidate Donald Trump’s new tariffs proposal on imports are implemented, a study from the National Retail Federation (NRF) showed on Monday.
The study said the proposed tariffs would impact consumer product categories such as apparel, toys, furniture, appliances, footwear, and travel goods, particularly affecting items where China is a major supplier.
Consumers have turned frugal over the past couple of years and have been increasingly looking to limit expenses by curbing non-essential spending, which has in turn hit sales at retailers and consumer goods companies in the United States.
“Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices,” said Jonathan Gold, NRF’s vice president of supply chain and customs policy.
However, if the import tariff is implemented it would further worsen the impact on low-income families, as the tariff which is a tax paid by the U.S. importer ultimately comes out of consumers’ pocket through higher prices, the report said.
Last month, NRF forecast holiday sales in America to grow as much as 3.5% to $989 billion from November to December, which is slowest in six years.
Trump floated the idea of a 10% universal tariff on imports from all foreign countries in an interview with the Washington Post in August last year, and said in February that there would be an additional 60% to 100% tariff on imports from China.