(Just The News)—The world’s largest business lobby warned consumers Thursday to prepare for higher prices.
U.S. Chamber of Commerce Executive Vice President and Chief Policy Officer Neil Bradley said some of President Donald Trump’s policies will drive economic growth, but that growth could be smothered by tariffs.
“The deregulatory efforts and the tax extensions are a great start, but the price increases that will inevitably follow these unprecedented tariff levels make the cost of living and shopping for everyday essentials more expensive,” he said.
Last week, the U.S. Chamber estimated that if U.S. businesses maintain the same level of imports at these new tariff rates, they will face a $202 billion annual tariff tax.
A tariff is a tax on imported goods paid by the person or company that imports the goods to the federal government. The importer can absorb the cost of the tariffs or try to pass the cost on to consumers through higher prices.
Economists, businesses and some publicly traded companies have warned that tariffs could raise prices on a wide range of consumer products.
Trump has said he wants to use tariffs to restore manufacturing jobs lost to lower-wage countries in decades past, shift the tax burden away from U.S. families and pay down the national debt.