ALEXANDRIA, VA.—A new study finds the Trump Administration’s proposed tariffs on TVs from China would boost the price Americans pay for sets, costing an estimated $711 million next year.
The study, commissioned by the Consumer Technology Association (CTA) and National Retail Federation (NRF), finds the proposed tariffs will increase the price of TVs from China by 23 percent and increase prices for all TVs by 4 percent.
"These proposed tariffs are bad for the economy, businesses and American consumers," said Gary Shapiro, CEO and president, CTA.
The study relies on a model that reflects shifts to other sources that would occur if the tariff on Chinese products in four product areas –televisions, monitors, batteries and printers—were imposed.
The results “show that, even accounting for alternative sources of supply, the proposed tariffs would have a negative impact on American consumers,” the study said.
As relates to TVs, the tariffs would result in U.S. consumers cutting back on television purchases by 7.8 percent, it found. “The net impact on the economy (the value of U.S. producer gains plus tariff revenues to the U.S. government, minus the value of consumer losses) is a hit of $322 million,” it said.
"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 NRF President and CEO Matthew Shay.