(C) Common Dreams
This story was originally published by Common Dreams and is unaltered.
. . . . . . . . . .
Trump's tariff proposal will pass 'costs back to the consumer', AutoZone CEO warns [1]
[]
Date: 2024-10-31
One of former President Donald Trump's biggest talking points during his campaign is imposing high tariffs on goods from other countries and that could mean driving prices even higher for some goods used every day by people in the United States.
Trump has said time and again that he would impose tariffs on goods from foreign countries, and will be paid by these foreign suppliers. In reality, it is the American importers that pay it to the U.S. Customs and Border Protection agency when products enter the country. Some companies based in the United States plan to pass on this extra tariff cost to the consumers.
“If we get tariffs, we will pass those tariff costs back to the consumer,” Philip Daniele, CEO of AutoZone, said on a recent earnings call. “We’ll generally raise prices ahead of — we know what the tariffs will be — we generally raise prices ahead of that.”
AutoZone isn't the only company with similar plans, The Washington Post spoke to multiple CEOs of U.S.-based companies that already have plans in place to raise prices if Trump's tariff plan comes to pass after Elections Day.
Here's what you need to know.
What is a tariff?
According to Merriam-Webster Dictionary, a tariff is a "schedule of duties (payment/taxes) imposed by a government on imported or in some countries exported goods."
Tariffs aren't something new in the U.S. These duties have been imposed throughout the nation’s history and are a much older form of federal revenue than income taxes. However high tariffs can come with a price in the form of retaliatory trade wars, which were seen in the 1920s and 1930s.
What tariffs does Trump want to impose?
Trump's plan is to impose a 60% tax on products from China and a 10% to 20% fee on all other foreign goods. These would be some of the heaviest tariffs imposed since the 1930s, according to the Washington Post.
During interviews and rallies, Trump has stated that the tariffs are meant to encourage companies to produce inside the United States with American workers making the products rather than buy from overseas suppliers.
What could these tariffs cost Americans?
During Trump's first term in office, his administration imposed tariffs up to 25% on more than $360 billion in products from China, tariffs that continued into President Joe Biden's administration and more were added on to things like electric car batteries and microchips.
If Trump wins the presidential election and imposes the 10-20% tariff on some foreign goods it could cost a typical U.S. household between $1,700 and $2,600 per year, according to an August study by economists Kimberly Clausing and Mary Lovely.
"If executed, these steps would increase the distortions and burdens created by the rounds of tariffs levied during the first Trump administration (and sustained during the Biden administration), while inflicting massive collateral damage on the U.S. economy," according to the economists' paper.
What does Kamala Harris stand on tariffs?
Vice President Kamala Harris's campaign officials have stated that their approach would be more targeted than Trump’s plan to tariff all of the $3 trillion in foreign products that the United States imports every year.
Harris has been cautious about tariffs and her focus is instead on the impact they have on everyday consumers. She also argues that tariffs can lead to trade wars where other nations impose tariffs on the products U.S. companies export, according to USA TODAY.
[END]
---
[1] Url:
https://www.commercialappeal.com/story/news/politics/2024/10/31/trump-tariff-proposal-consumer-prices-autozone-ceo/75936775007/
Published and (C) by Common Dreams
Content appears here under this condition or license: Creative Commons CC BY-NC-ND 3.0..
via Magical.Fish Gopher News Feeds:
gopher://magical.fish/1/feeds/news/commondreams/
