New Trump tariffs will add to 17 per cent prices as the holiday shopping season begins


The Trump tariffs to be implemented in September 1 will hit US consumers while shopping for the holidays. (Charlie Riedel / AP)

An L.O.L. Surprise! House, three story dolls house with work lift and heart-shaped pool, was one of the most sold holiday toys last year.

Now it is one of millions of goods caught in the middle of China's trade war with China. If President Trump's new tariffs are held, the doll house will cost $ 199 $ 250, according to the manufacturer.

“There is no question: We need to raise prices, which means that consumers will pay more than 30 to 40 percent for a toy,” said Isaac Larian, chief executive of MGA Entertainment, who makes popular brands as Bratz, Little. Tikes and Poopsie Surprise Slime! “We have a peak holiday season – the orders are there, factories are making toys and preparing to put them right when these tariffs are to be won.” T

Trump trumped Thursday to add 10 percent Chinese import tax to $ 300 billion – including t-shirts, toys and televisions – starting September 1. While consumers are mostly protected from earlier tariffs, the latest round of prices would mean just about what Americans buy. Over 60 per cent of the affected items are consumer goods, according to analysis by Goldman Sachs.

Toy price would rise by about 17 percent, shoes about 8 percent, under 5 per cent clothing, and 4 per cent furniture and TVs, according to a report from the Trade Partnership, prepared for the National Retail Federation. The cost of laptops and tablets is expected to rise by $ 50 to $ 120, and the smart phones will cost an additional $ 70, according to the Consumer Technology Association.

Sports Sports Columbia executives say they have already told retail customers to expect higher prices in the coming months. “Some prices will go up. We don't know exactly which ones or how much – but we know what will be around the industry, ”said Peter Bragdon, the company's chief administrative officer.

Retailers say that the time could not be worse. The tariffs are scheduled to take effect just as they start their fourth quarter, a period made or a break that often determines they have a profitable year.

The industry has overcome its turbulence in recent years. The increase in online shopping, as well as growing competition, has reduced profits and has resulted in many retail bankruptcies since 2017. Retailers have already announced that there are over 7,500 stores involved. , and the analysts say that thousands of new people could close and lose jobs.

“These tariffs will only threaten US jobs and raise costs for American households on everyday goods,” said David French, Senior Vice President for government relations at the National Retail Federation, in a statement. “The tariffs applied in the last year have not worked, and there is no evidence of a new return for American businesses and consumers.” T

He and others indicated that the price of daily goods could lead to a cooling effect on the overall economy. Consumer spending accounts for around 70 per cent of the US economy, with the retail industry accounting for a quarter of the country's jobs.

For each year the tariffs are in place, American shoppers would pay $ 4.4 billion more from clothing, $ 2.5 billion more for shoes, $ 3.7 billion more for toys and $ 1.6 billion more for household appliances , according to the Trade Partnership. These increases are on top of previous tariffs, which contributed 25 per cent Chinese imports of $ 250 billion, which were different from cheese, garden tillers and dog jerseys.

“We survived the Great Depression, we survived the Second World War, but what we now have – it's hard to believe that we are even in America anymore,” said Lance Ruttenberg, American Textile Company chief in Pittsburgh, who does bedding for brands like Sealy and Tempur-Pedic. “This is debilitating for businesses and consumers.”

Companies of all sizes are likely to feel the higher prices – and the demand slowing down. Apple's iPhones sales, for example, could drop up to 8 million units in the coming year if the company goes up to 10 percent price on consumers, according to Dan Ives, an analyst on Wedbush Securities. He said that Apple, which receives most of its products in China, is a "child poster" for the trade war.

“With the tariff news a minor point is spent in iPhone's demand, its weight on shares,” Ives wrote in a research note on Thursday. “These latest tariffs could increase the cost of iPhones globally.” T

Apple's stock price has fallen more than 5 percent from Thursday's Trump Thursday evening. Shares of the Best Purchase have decreased by 9 percent, and Target has reduced by 5 percent.

Business owners say that it is difficult to prepare the uncertainty of tariffs for the upcoming holiday holidays.

At Jolly Christmas Shop in Loganville, Ga., The owner Meghan Nichols completed holiday orders in May to avoid any surprise price rise. But in the spring, she says she will have no choice but to mark up everything she sells.

“The sellers are already raising prices for the next Easter,” she said. "It will have a huge impact."

Rick Woldenberg, chief executive of the educational toy company, Learning Resources, has a total toy value on the way from China that could cost him 10 per cent more. The company, located in Vernon Hills, Ill., Has been making its toys in China for years to keep costs low for American shoppers. But soon, he says, he might be forced to raise prices – at the worst possible time of year.

“It is wonderful that the Trump administration would consider the timing of this short notice submission when all American businesses are building up inventory and preparing for the biggest sales time of the year,” said Woldenberg. “It could not affect the American economy any more if they tried.”

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