Tariffs Are Costing Shoppers

Consumers Won’t See That Money Returned

As global market tensions continues to affect the economy. Tariffs are continuing to take a toll on everyday shoppers. Tariffs are taxes placed on imported goods and paid by importing companies economists. Shoppers agree that effectively the tariffs acts as a hidden surcharge.

How Tariffs Affect Society

When the government places tax on products such as electronics, clothing, automobiles, or household goods businesses face higher import costs. These companies must decide whether to accept the expense or pass it along. Companies implement part of those costs to the customers. The result is a much higher price tag at checkout.

Stores Hide The Tariff Tax

Some temporary sales taxes are refundable but tariff related price just increases and don’t come with any reimbursement. Once consumers pay more for a product that money isn’t refundable. Even if tariffs were reduced or removed prices don’t always go accordingly. Businesses may keep prices a bit more steady to recover losses, supply chain disruptions, and protect profit margins.

How Tariffs Work

Items like appliances, food products, and construction materials have had a noticeable price increase. Higher costing material have raised housing and renovation expenses. Taxes on imported materials have caused domestically assembled products to be more expensive.

Tariff supporters argue that they protect domestic industries and encourage local manufacturing. On the other hand critics argue that certain parties may benefit, but for consumers it causes a burden in the short term.

Prices Will Remain The Same After Tariffs End

Even if the government stops the tax surge, stores will not lower their prices. The stores will usually keep the prices high to make up for the money they lost while the tariff was active. Stores create a temporary surcharge into a permanent increase in the cost of living for everyday consumers. The increase in prices ensures that corporate profits are protected even after the taxes are removed. These taxes continue to be a financial burden on the average American family.

Sources:

Politico: Trump’s next tariff fight: Keeping the money

CNN: Supreme Court justices sit in silence at State of the Union as Trump slams their tariffs decision

Featured Image Courtesy of Beth Flickr Page – Creative Commons License

Inset Image Courtesy of Infrogmation of New Orleans Flickr Page – Creative Commons License