Royston Carr Asset Management economists say businesses may pass along greater costs to consumers in wake of another round of US tariffs.
Online PR News – 06-November-2018 – Analysts at Royston Carr Asset Management say the new round of tariffs planned by US President, Donald Trump if trade talks between the two nations do not reach a satisfactory conclusion, could end up costing US consumers.
The US is said to be getting ready to announce a fresh round of import tariffs on all Chinese goods not yet subject to taxes and Royston Carr Asset Management analysts say that the new tariffs could cost American consumers 10 times as much as previous duties.
Higher input costs and tight labor markets could cause many companies to pass along a portion of the price rises to consumers and Royston Carr Asset Management analysts say this could cause inflation to rise by even more than was initially expected.
The new tariffs, which could be implemented as early as the beginning of February next year, would affect Chinese made consumer items like smartphones and shoes; goods that Trump and his administration have left untouched until now.
The cost of the next round of tariffs could be 10 times more than the initial tariffs on Chinese goods to the value of $50 billion and twice as high as the impact on the subsequent tariffs on goods worth $200 billion.
Retailers of clothing and footwear are already preparing themselves for the higher tariffs and some are considering making use of suppliers in other parts of Asia but, as demand increases, so will prices in countries like Vietnam and Cambodia.