ATLANTA — Tariffs have been top of mind for many Georgians since the election.
Now that President Trump’s 10% tariff on China is in effect and the 25% tariffs on Canada and Mexico are still possibilities, many consumers want to know what the impact will be on their bottom line.
Deena Cundall didn’t waste time buying a new SUV because she doesn’t want to waste her money on the higher prices, she fears are coming.
“Vehicles are a very large purchase, tens of thousands of dollars. If these tariffs get implemented and I wait until next summer like that could like really add to the price tag,” she said.
Cundall is also in the market for a new stove and dishwasher.
“If you’re looking at adding 20%, 25% on top of that or more, that adds up,” she said.
Channel 2 consumer adviser Clark Howard said making big purchases like Cundall might seem like a good idea but don’t do it.
“There’s nothing that I would rush to buy because of a concern about what might have a tariff on it once it’s final,” Howard said.
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Channel 2 Action News looked at what two trade associations estimate the cost increase for things like toys, laptops, and phones could be.
The National Retail Federation released a study in November looking at the possible impact of a 60% to 100% tariff on China, and 10% to 20% across the board.
Jonathan Gold is the Vice President of Supply Chain and Customs Policy for the NRF. He said consumer will feel a pinch in their pocketbooks.
“I think a 25% tariff on Canada and Mexico would have a significant impact on the us economy,” Gold said.
The study found tariffs would result in a price increase of anywhere between $2,500 to $7,600 for an American family within the year.
Specific product categories included appliances, apparel and toys.
A $650 refrigerator could cost between $776 and $852. That’s an increase of 19% to 31%.
$90 running shoes could jump to as much as $116.
The study found toys would face the biggest hit. A tricycle that costs $50 right now could be as much as $78.
A January report from the Consumer Technology Association also weighed in on the possible impact of the tariffs finding: “U.S. consumer purchasing power will drop by $90 billion to $143 billion.”
The report estimates laptops and tablets may see a 45% to 68% increase. Video game consoles could jump by as much as 58%, smartphones 26% to 37%.
While the numbers are startling, there is no way to no know what cost companies will pass on to shoppers and when it comes to really big-ticket items like the SUV that Cundall just bought.
“Dealers are now giving smaller discounts or no discounts at all buying cars because you want to beat the tariffs,” Howard said.
Howard said tariffs will slow down demand and dealers are going to have to give bigger discounts to get people back in those vehicles.
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