The Consumer Technology Association warned today that the tariffs on Canada, Mexico and China will fuel inflation and hurt U.S. consumer purchasing power by $90 billion to $143 billion.
Gary Shapiro, CEO of the Consumer Technology Association (CTA), said in a statement, “I’ve said it before, and I’ll say it again: Tariffs are taxes on Americans and American business, not foreign governments or companies. Adding tariffs on imports from Canada, Mexico, and China will raise prices for Americans at a time when inflation and affordability is their top concern. Tariffs will drive inflation higher, just when we need lower inflation to drop interest rates.”
The tariffs are expected to go into effect for Canada and Mexico tonight, while China tariffs are already in effect. The Trump administration believes the tariffs will help bring manufacturing jobs back to the U.S.
Shapiro said that if we can drop interest rates two points, we could lower annual interest payments on the national debt by more than $700 billion. He said tariffs will spur inflation, and not just on groceries. The Entertainment Software Association has also said it is concerned about the effects of tariffs on gaming.
CTA research shows tariffs make the tech products Americans love and rely on more expensive. CTA studies indicate that, if implemented as proposed by President Trump on the campaign trail, tariffs could result in a $90 billion to $143 billion decline in U.S. consumer purchasing power for technology products.
“More, tariffs will strain our relationships with Canada and Mexico—two of our closest neighbors and key trading partners,” Shapiro said. “These countries have already pledged to retaliate against U.S. exports, causing even more damage to the U.S. economy and creating a harmful cycle of retaliatory tariffs. Tariffs are tools for resolving trade disputes, not political bargaining chips for issues like immigration or drug control.”
In closing, Shapiro said, “We urge President Trump to focus on reaching agreements with our trading partners that allow us to step back from costly trade fights and fuel the American economy, fight inflation, and protect the pocketbooks of millions of Americans.”