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Tariffs Are Coming for Your Couch 💵💵

President Trump hiked existing tariffs on $200 billion in Chinese goods to 25% from the 10% he imposed last fall. Before the hike, many U.S. retailers and Chinese suppliers simply absorbed higher prices to shield us consumers. But this time...regular shoppers are more likely to feel the impact.
Some of the products that could get pricier?
  • $11.3 billion in furniture goods will be affected by the tariff hike. 
  • Peterson Institute researchers said the tariffs would hit $23 billion worth of computers and computer parts.
  • We've got bad news for your crush at the climbing gym and good news for the Roadrunner. Outdoor gear, the fabric used in fleece vests, and anvils are subject to the increased tariffs. 
The fine folks over at NBC put together a searchable database you can peruse, or you can look at the full tariff list here. Either works as a Saturday night activity. 

Retailers are trying to adjust

Many stores are already preparing for the holiday season, and the announcement meant quickly adjusting purchase orders, staffing, and prices.
  • Some retailers, like Macy’s, have been trying to diversify their supply chains since the beginning of Trump’s tussle with China. But it’s tough to find other suppliers. Panjiva estimates that, for nearly $100 billion of the products targeted, China supplies more than half the imports that Americans buy.
  • Walmart, the world’s largest retailer, sent a letter to the Trump administration last fall saying a 25% hike would be a “serious burden” for low-income families.
What’s next: Though stocks were down all week, they managed to rebound after Treasury Secretary Steven Mnuchin said Friday’s talks were “constructive.” But we’ve heard that one before...and Trump signaled Friday that a reconciliation isn't around the corner.

1 comment:

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