Trump tariffs would add costs for consumers, economist says [Video]

U.S. consumers would likely see prices increase if President-elect Donald Trump follows through with a plan to levy import tariffs, experts said Tuesday during CNBC’s Financial Advisor Summit.

“Either way, there is a cost to consumers,” said Erica York, senior economist at the Tax Foundation.

A tariff is a tax placed on imported goods. Tariffs are paid by U.S. companies that import those goods.

Businesses could pass along higher prices to consumers at the store to offset the cost of tariffs, for example, experts said.

Tariffs may also reduce business profits, thereby lowering returns for shareholders and perhaps pushing businesses to hold down wages or employment opportunities for workers, York said.

“It is such a company-specific decision,” she said.

In an NBC News interview that aired Dec. 8, Trump said he would fulfill …