The US Chamber of Commerce is warning that tariffs will continue to rise, leading to higher costs for consumers. According to the Census Bureau’s trade data, record levels of tariff revenue have been reported, with more expected in the weeks ahead.
The Federal Government imposed $1.9 billion in additional taxes on food and clothing in May and June, a significant increase from last year’s rates. The effective tariff rate on food products jumped to 7% compared to 2%, resulting in a massive tax on imports. Similarly, tariffs on back-to-school items increased from 5% to 18%, with an estimated $73 million tax increase on these supplies.
These rising tariffs will disproportionately affect wholesalers and manufacturers initially, but consumers can expect to see higher prices in the months ahead. The US Chamber of Commerce urges policymakers to consider the impact of tariffs on businesses and ultimately, consumers.
Source: https://www.uschamber.com/tariffs/tariffs-bring-massive-new-taxes-on-food-apparel-back-to-school-items