US consumer industry group warns tariffs could reduce purchasing power by up to $123b annually, hurting industry and adding to inflation

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By Yin Yeping (Global Times) 10:08, May 09, 2025

In addition to the drop in American purchasing power, the association warned that the estimated economic losses of the tariffs "could reach as much as $69 billion annually, even after accounting for potential reshoring and new domestic production."

For every $1 in gains to domestic producers, consumers may lose up to $16 in spending power, added the association.

"These new figures show sweeping tariff policies could increase consumer costs and hurt the broader US economy," said Ed Brzytwa, CTA vice president for international trade.

The CTA has repeatedly voiced its concern over US tariffs. In a previous statement sent to the Global Times in March, Gary Shapiro, CEO and vice chair of the CTA, warned that the tariffs "will fuel inflation and hurt the US economy."

"Tariffs are taxes on Americans and American businesses, 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," Shapiro said.

(Web editor: Tian Yi, Zhong Wenxing)