How Trump-era trade policy threatens to send up the prices you see on store shelves
President-elect Trump has offered plenty of tough talk on his way to the White House. And while the businessman has turned his rhetorical fire to everything from the Iran nuclear deal to the Affordable Care Act, perhaps no issue has been as consistent a target for his ire than trade policy.
Trump has talked often of introducing soaring new tariffs, pulling out of trade agreements, and recently, punishing American companies who move jobs overseas. These moves, he says, would be aimed at encouraging companies to create jobs in the United States by making goods here at home.
If a Trump administration ends up pushing for these or other major policy changes on trade, few industries are likely to feel the jolt more acutely than retail, which sells you smartphones made in China, sneakers made in Vietnam and furniture made in Mexico. With that in mind, it’s worth examining what is at stake in this debate for retailers and consumer goods importers. A sweeping change could alter how they do business and, in turn, could affect the prices or merchandise selection available to you, the consumer.
Let’s start with a look at the status quo. Retail industry experts often point out that tariffs are unusually high on many of the items that fill store shelves. For certain types of apparel, tariffs can go up to 32 percent; on footwear, they can soar over 67 percent. That is significantly higher than the 1.5 percent average seen across all imports including goods such as automobiles and oil.
https://www.washingtonpost.com/news/business/wp/2016/12/09/how-trump-era-trade-policy-threatens-to-send-up-the-prices-you-see-on-store-shelves/?utm_term=.73642a9f9358&wpisrc=nl_rainbow&wpmm=1