Don't count on U.S. shoppers to ignore tariffs' costs
By Andrea Felsted / Bloomberg Opinion
We are about to find out who is going to “eat” President Donald Trump’s tariffs. Don’t expect U.S. consumers to be the ones eagerly picking up their knives and forks.
While the higher levies have been the subject du jour for months, they are only just filtering through to the checkout. And more hikes will come in the final three months of the year, when holiday shopping gets under way.
The Golden Quarter, so called because it is crucial to companies’ fortunes, is always a stand-off between retailers trying to sell as much full price merchandise as possible, and shoppers seeking deals. With stores needing to pass on the higher import costs, the confrontation will be tenser than usual this year. Unfortunately for retailers, the past few years have given consumers the will and know-how to avoid being stuck holding the bill.
Some companies, including Nike Inc. and cosmetics retailer Elf Beauty Inc., have already raised prices. Others have only begun to do so recently. Primark, part of Britain’s Associated British Foods Plc., began adjustments at its US stores in September. As a discount retailer, Primark follows the lead of rivals, so the fact that it lifted prices by an average percentage in the double-figures implies that the escalation is becoming more widespread. Other increases follow as the inventories retailers built up ahead of tariffs run down. Walmart Inc. warned in late August that its costs were increasing each week as it received new supplies of imported goods.
https://www.heraldnet.com/opinion/comment-dont-count-on-u-s-shoppers-to-ignore-tariffs-costs/
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