Some retailers are using President-elect Donald Trump's proposed tariffs to get consumers to buy now, suggesting whether import tariffs would go into effect next year, a range of goods Americans may have to spend a lot of money.
Apart from the traditional, this is another sales strategy that some companies are implementing black Friday Rebates for consumers to receive spend as much as possible Before the holidays.
On Monday, Trump promised to add 25% tariffs on all products from mexico and canadaThe proposed taxes are in addition to an earlier campaign promise to impose a baseline 10% tariff on all US imports, along with a 10% levy on Chinese goods, in an effort to stem the flow of illegal immigration and illicit drugs into the US. After he takes charge, 60% tariff will be imposed on goods sent from China.
Whereas Prices on different types of goodsIf Trump moves forward with his tariff proposals, prices on items ranging from shoes to vacuum cleaners could actually rise, with some retail experts saying retailers are taking advantage of people's universal fear of missing out on limited-time offers or experiences. Trying to take advantage. But experts caution that this strategy could give some buyers the wrong impression.
Neil Saunders, managing director and retail analyst at GlobalData, said, “It's a double-edged sword. I think it can get people interested in buying things, but it can also divide consumers if they think that everyone “Is going to raise its prices.” “The other problem is that it's also a bit political, so some retailers will want to stay away from it.”
While Trump has said he plans to move forward with tariffs, some economists have pointed out that the next administration could simply use the duties as a bargaining chip, which could, for example, persuade the White House to strike new trade deals. Can enable. Even though the tariffs are not fixed, many companies have clearly stated that the levies imposed by Trump will inevitably force them to raise prices to consumers.
“Lock our current prices”
For example, filtered shower head maker Joly recently said it would have to pass on some of the estimated costs from the tariffs to consumers. In a recent email to customers, the company said imposing tariffs on goods made outside the US “would mean we would need to raise our prices.”
“If you're considering purchasing Jolie, now is a great time to lock in our current pricing,” the company said. Currently, a shower head with a filter subscription costs $148. The company announced a “potential” new price of $178.
Corey Barry, CEO of consumer electronics retailer Best Buy, similarly said on its latest earnings call that the goods it sells may became more expensive Under Trump's proposed tariffs.
Any additional costs on U.S. imports from the three counties “will be shared by our customers,” Barry told investors on Nov. 26, noting that “there is very little [the] Consumer electronics sector which is not imported.”
“Pre-tariff” sales
and a Dallas, Texas-based furniture store called Finely Home Furnishings on Facebook, announced A “pre-tariff sale” that started this month runs through January.
“Get the deal while you can,” the retailer said.
Ultimately Home Furnishings did not immediately respond to CBS MoneyWatch's request for comment, or indicate how much it expects it might need to raise prices if the new tariffs are implemented.
Etsy seller Buzzy Park, who also sells handmade bamboo picture frames Advertised “Pre-tariff” sales on its entire inventory will begin this month and run until any new tariffs take effect. “Hurry up and get them at their current prices,” Park wrote in a social media post.
Whereas Prices on different types of goodsPrices on everything from shoes to vacuum cleaners could actually go up, with some marketing and retail experts saying that even sellers who don't expect to face additional costs could end up charging customers more. Could use potential tariffs as an excuse.
Scott Lincicome, trade expert at the Cato Institute, said, “If consumers are nervous about things getting more expensive, they're playing into the hands of companies across the country to use that as an excuse to raise prices, even if it's May not be necessary.” , a public policy research group. ,
“It's a very easy excuse when you're in a constant battle with consumers over price,” he added.