Trade war could mean higher prices for US consumers

Global Business

American consumers could be the ones picking up the tab if U.S. tariffs and Chinese countermeasures go into place according to a recent study funded by U.S. retailers and technology companies.

CGTN’s Jim Spellman reports.

Dan Ikeson of the CATO Institute said a trade war will mean higher prices, even on products not facing tariffs.

The cost of raw materials and manufacturing equipment will go up, eventually leading to higher prices.

“Some of this is hidden. When tariffs are placed on intermediary goods it gets baked into the cost of goods and passed on to consumers unknowingly,” said Ikeson.

Other products like televisions will face direct tariffs.

A study funded by Trade Partnership Worldwide, a consulting firm working for U.S. retailers and technology companies, finds U.S. tariffs would hike prices on Chinese-made televisions by around 23 percent. U.S. consumers would cut back on TV purchases by 7.8 percent and pay $711 million more on televisions they purchase in the year after tariffs go into effect.