President-elect Trump plans to impose sweeping tariffs. Here's how it could impact your wallet.
BOSTON – President-elect Donald Trump has promised to impose steep tariffs once he takes office. So what impact would that have on your wallet?
What tariffs are Trump proposing?
While on the campaign trail, Trump proposed tariffs of up to 60% on Chinese goods. He also proposed broader tariffs of 10% to 20% on all imports.
Trump has not released many additional details on the proposals.
The president-elect has also promised retaliatory levies on any country that imposes taxes on American-made goods.
What impact would tariffs have?
The National Retail Federation said that as a result, shoppers could end up paying higher prices. American companies will be forced to pay more for goods, a cost that could trickle down to the consumer.
For example, the organization estimates a new toaster could soon cost $8 to $12 more. Running shoes could go from $50 to almost $60. The price of a $2,000 mattress and box spring could increase by $100 to $200.
"Such tariffs would have significant impact on the costs of a wide range of consumer products sold in the United States," the National Retail Federation said in its report condemning the proposals.
The report predicts that the tariffs could result in approximately $7,600 in additional costs per household annually.
John Eagles with Retail Consulting Partners said he doesn't believe Trump will follow through with tariffs that would increase costs.
"I can't see a scenario where president-elect Trump negotiates a deal that only impacts the consumer," he said.
When could tariffs go into effect?
In 2018, Trump imposed similar tariffs on China. They retaliated with their own tariffs on U.S. goods like aluminum and cars, costs that the consumer paid for.
On an earnings call in September, the CEO of AutoZone promised the same, saying that should the tariffs be put in place, their customers would pay the price.
Inu Manak, a trade policy fellow at the Council on Foreign Relations, told CBS MoneyWatch the first wave of tariffs could be put in place within months of Trump taking office.