Retailers are urging Americans to purchase items now before potential tariffs take effect next year.
President-elect Donald Trump has promised to impose a slew of tariffs on America’s major trading partners if he takes office in January.
He has pledged to impose 25 percent tariffs on all goods from Mexico and Canada, and an additional 10 percent tariff on Chinese goods on top of existing duties.
Late last month, he also threatened several countries – known as BRICS – with 100 percent tariffs if they tried to move away from the US dollar.
While it is not known which of these proposals will actually come into effect next year, tariffs generally mean higher prices for consumers.
Retail experts and economists have warned how many everyday products are likely to become more expensive under Trump’s proposals, including food, electronics and even America’s favorite beer.
And now some retailers are using the looming threat of tariffs to encourage Americans to shop now and cling to current prices.
However, some experts are skeptical and see it as another sales tactic to get consumers to spend as much as possible during the holiday season, which is a crucial time for the bottom line.
President-elect Donald Trump has promised to impose a slew of tariffs on America’s major trading partners when he takes office in January.
‘It’s a double-edged sword. I think it could get people interested in buying things, but it could also divide consumers if they think everyone is going to raise their prices,” Neil Saunders, managing director and retail analyst at GlobalData, told CBS News.
“The other problem is that it’s also a bit of a political issue, so some retailers might want to abstain from it.”
Filtered showerhead manufacturer Jolie said last month it would have to pass on some of the expected costs of the tariffs to consumers, the outlet reported.
“If you’re considering buying a Jolie, now is a good time to lock in our current pricing,” the company said in a recent email to customers.
Currently, a shower head with a filter subscription costs $148. The company announced a ‘potential’ new price of $178, according to CBS.
Other retailers urged customers to get deals on their social media pages.
Dallas-based furniture retailer Finally Home Furnishings posted on Facebook: “Pre-Tariff Sale! This is not an exercise. The same items you see now will be double the price once the tariffs take effect. This is not speculation. We went through this four years ago.”
J&J Sports Service, a fishing rod retailer based in Maryland, also encouraged customers to “buy now” in a post on the social media site.
“The arrival of tariffs is no joke,” the message read.
Etsy seller Buzzy Park, who sells handmade bamboo photo frames, made a similar plea to customers on Facebook: Axios reported.
“Hurry and buy them at current prices before they become both unaffordable and unattainable in the future,” they wrote on November 6.
Dallas-based furniture retailer Finally Home Furnishings posted a warning on Facebook
J&J Sports Service, a fishing rod retailer based in Maryland, encouraged customers to “buy now” in a post on the social media site
Etsy seller Buzzy Park, who sells handmade bamboo photo frames, made a plea to customers on Facebook
Some experts see the warnings as a new sales tactic that companies are using to get consumers to spend as much as possible during the holiday season, which is a crucial time for their bottom lines.
Some marketing experts say that sellers who don’t expect additional costs can use potential tariffs as an excuse to charge customers more.
“When consumers panic because things are getting more expensive, they play into the hands of companies across the country by using this as an excuse to raise prices even when they don’t have to,” said Scott Lincicome, a trade expert at Cato Institute. a public policy research group, told CBS.
‘It’s a useful excuse if you’re constantly fighting with the consumer about price.’
It comes as major retailers have also sounded the alarm over how tariffs could force them to raise prices for consumers next year.
During the latest earnings call last week, Best Buy CEO Corie Barry said the largest number of imports are coming from China, followed by Mexico.
“These are goods that people need, and higher prices don’t help,” Barry said.
Walmart also told customers last month that prices on some items in its stores could increase if Trump’s plans take effect.
“We never want to raise prices,” Walmart CFO John David Rainey said during an earnings call.
“Our model is low prices every day. But there will likely be cases where prices for consumers rise.”
Rainey said it was too early to determine which products might be particularly affected.
He added that about two-thirds of the items the big-box retailer sells are made, grown or assembled in the United States.