American consumers could lose $31 billion in spending power if U.S. tariffs are raised on common household products like microwaves and T-shirts imported from China, according to a new report released today by the National Retail Federation. The study, examines how ending the country’s permanent normal trade relations (PNTR) trade status would impact five specific consumer product categories including toys, furniture, apparel, household appliances and footwear
The NRF commisioned research on the impacts of terminating China’s PNTR status and subjecting imports from China of selected consumer products to the much higher tariff rates applied to countries that do not benefit from PNTR (referred to as “most favored nation” (MFN) or “Column 2” tariff rates) instead of those extended to countries benefiting from PNTR (referred to as “Column 1” tariff rates).
For all of the products reviewed,, very little of the production currently sourced from China can be moved to other countries. Sourcing of products subject to Section 301 tariffs (apparel, footwear, furniture) has already moved to the extent possible. .For other products not yet subject to those tariffs (household appliances, toys), China accounts for most if not nearly all of the supply from international manufacturers partly because efforts to move production are more challenging.
In 2022, China accounted for 81% of U.S. imports of toys, and nearly half of U.S. imports of household appliances.
Report: “Estimated Impacts of Changes to China’s Tariff Status"
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