US tariffs mean higher prices on cars, furniture: former Ambassador to China
The Trump administration’s tariffs imposed on China and other countries have resulted in a higher cost for American consumers, according to former U.S. Ambassador to China Gary Locke
“It’s going to be the consumer that ultimately pays, former U.S. Ambassador to China Gary Locke said on “Cavuto: Coast-to-Coast” Friday. “It’s going to hurt American companies and ultimately its going to be passed on to American consumers whether is the stuff you buy at Costco, Walmart, Target,” he said.
Locke, the Obama-era Commerce Secretary, predicts tariffs on Chinese goods will drive up the price of U.S. automobiles and hurt the average household by upwards of $500 to $800 on smaller item purchases.
“Some of these tariffs on China will be on small parts that come in from China, put into American made automobiles and that’s going to raise significantly the cost of American made automobiles,” he said. "If you planning on making a major a purchase whether it is a lawn furniture, a BBQ set or an automobile, it’s going to cost you more.”
President Trump has vowed to raise tariffs on America’s two largest trading partners, China and Mexico. Trump late Thursday announced he plans to slap Mexico with 5 percent tariffs on goods. The White House has already imposed tariffs on $250 billion in Chinese goods and potentially $300 billion additional tariffs. China’s retaliatory tariffs on $60 billion of U.S. goods begins to take an effect Saturday.
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Locke said the fallout from the trade war won’t mean America should expect to pay higher costs for goods from parts of Asia.
“I think you’ll still continue to get low cost products from Asia, but you’re also still going to get the bulk of it coming from China,” he said.