US consumers may face $31 bn loss due to high tariffs on Chinese goods

Source:China Sport ShowRelease time:18-Oct-2023Clicks:

Article From：fibre2fashion

American consumers could stand to lose as much as $31 billion if the United States decides to increase tariffs on goods imported from China, warns a new report by the National Retail Federation (NRF).

The study, named 'Estimated Impacts of Changes to China’s Tariff Status', delves into how the revocation of China’s Permanent Normal Trade Relations (PNTR) status could affect the cost of consumer goods such as apparel, household appliances, and footwear.

Revoking China's PNTR status would lead to significantly higher tariffs on imports from China, impacting both finished goods and production inputs. Such a move could cost American households an average of $240 annually. Low-income households are projected to be most affected, as they spend a larger proportion of their income on the categories likely to see price increases, NRF said in a press release.

The study reveals that footwear could become nearly 5 per cent more expensive, furniture could rise by 4 per cent, and apparel by almost 2 per cent, exacerbating existing inflationary pressures.

The study comes at a time when there is increasing scrutiny on the trade relations between the US and China, with lawmakers considering changing or revoking China's PNTR status. Established in 2000 when China joined the World Trade Organization, the PNTR status offers China the same tariff rates that other US trading partners enjoy.

“Even though significant efforts have been made in recent years to diversify sourcing, China continues to play an important role in the supply chain of many retailers and other global industries, from sourcing raw materials to manufacturing and production,” NRF vice president of supply chain and customs policy Jonathan Gold said. “It would be impossible for American families to escape the higher costs from dramatic tariff increases on necessities such as apparel, footwear, furniture, appliances and toys.”