In a recent study, the National Retail Federation (NRF) warns that Donald Trump’s proposed tariffs could significantly impact American consumers, potentially reducing annual spending by $78 billion.

What Happened: The NRF study highlights the potential consequences of Trump’s tariff proposal on consumer goods, particularly those imported from China. The report, released on Monday, suggests that the tariffs could lead to increased prices on essential items such as apparel, toys, and appliances, affecting consumer spending habits, Reuters reported.

Jonathan Gold, NRF’s vice president of supply chain and customs policy, emphasized the reliance of retailers on imports to offer a diverse range of affordable products. The proposed tariffs, which include a 10% universal tariff on all imports and a possible 60% to 100% tariff on Chinese imports, could disproportionately impact low-income families as costs are passed on to consumers.

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The NRF also projects a modest growth in holiday sales, expecting an increase of up to 3.5% to $989 billion, marking the slowest growth in six years.

Why It Matters: The proposed tariffs have sparked significant controversy, with a growing backlash from voters who oppose the plan. An NBC News poll revealed that 44% of voters are less likely to support a candidate advocating for universal tariffs, highlighting the divisive nature of the issue amid economic challenges like inflation and fragile supply chains.

Furthermore, global concerns have been raised about the potential negative impact of Trump’s tariffs. Singapore’s state-owned investment firm, Temasek, warned that a Trump re-election could slow global growth, affecting U.S. companies and financial markets. The firm expressed concerns about increased uncertainty due to tariffs, which could lead to a stronger dollar and higher rates.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari