Americans still paying more for shoes, luggage, and hats after Biden leaves Trump’s tariffs in place: CNN

Screenshot from CNN

Americans have been bearing the brunt of higher prices ever since 2018, when then-President Donald Trump imposed new tariffs on a variety of Chinese-made goods, including baseball caps, luggage, and shoes, according to a CNN report.

Despite previously criticizing these duties in 2019, President Joe Biden has decided to keep them in place instead of lifting them to help alleviate upward pressure on prices.

The tariffs Biden left in place – which are paid by US importers and not China – hit roughly $300 billion worth of goods.

"Economists generally agree that tariffs drive up prices. JP Morgan economists estimated in 2019 that Trump’s tariffs on about $300 billion of Chinese-made goods would cost the average American household $1,000 a year, " said the article. 

For example, a suitcase that was $100 before Trump imposed the tariffs now goes for about $160, and a carry-on that was $425 is now $700, said Tiffany Zarfas Williams, who owns the Luggage Shop of Lubbock in Texas, it said. 

As a small, independent retailer, she had no choice but to raise prices on consumers to keep up with what she was charged by the brand name distributors, which paid the tariffs on the imported goods, according to CNN.

In May, major shoe brands including Adidas, Columbia Sportswear, Nike, and Steve Madden, sent a letter to Biden urging him to lift the tariffs.

"We are confident that removing Section 301 tariffs will alleviate a costly burden in this key area and translate to savings for our shoppers," the brands wrote, referring to the section of the law Trump used to impose the tariffs.

Matt Priest, president and CEO of the Footwear Distributors and Retailers of America, told CNN there is an "unmistakable correlation" between the tariffs and how much Americans are paying for shoes.

"If Biden had lifted the tariffs, shoe prices would eventually come down due to the highly competitive nature of the industry. One company would inevitably lower their prices, and then others would follow to compete," he said to CNN.

However, Biden announced he was keeping the duties in place just four days after the letter was sent, according to CNN.

"Biden had a great opportunity to set a new policy and direction, but all he's done is outsource his tariff policy to former President Trump," said Nate Herman, senior vice president of policy at the American Apparel & Footwear Association, in the CNN report.