Online furniture retailer Finally Home Furnishings has launched a "pre-tariff sale", warning customers that prices could soar once tariffs are imposed. CEO Sidney Arnold highlighted a common misconception, stating, 'People think exporting countries bear the cost of tariffs, but that's not the case.' He stressed that the additional expenses would be passed on to shoppers.
Photo: Dreamstime.
This approach is being adopted by various sectors, including outdoor gear and beauty products, in response to proposed tariffs by President-elect Donald Trump. A report from The Wall Street Journal dated 29th November noted that these tariffs could see prices for items such as clothing, toys, furniture, appliances, footwear, and travel goods rise by double digits. Presently, most of these products have tariffs at single-digit or low double-digit rates. However, with general tariffs set to increase to 10-20% and Chinese imports facing rates up to 60-100%, the average tariff could surpass 50%.
Trump's plan includes 10% tariffs on Chinese goods starting on his first day in office and a 25% tariff on products from Mexico and Canada. While the precise effect on prices is still uncertain, the looming tariffs have raised concerns over potential decreases in consumer spending. For example, electronics retailer Best Buy has noted a decline in demand, and companies such as Kohl's and Target have reported drops in clothing sales in recent months.
Smaller businesses, in particular, fear that inflation could make consumers more cautious about their spending. Beauty brand Jolly Steen has warned customers via email to 'lock in current prices' before tariffs lead to a 25% increase in the cost of their flagship product, a faucet with an integrated filter. Sporting goods retailer Tarpten also promoted its Black Friday sale with a message urging customers to buy before prices rise due to tariffs.
Custom fishing rod manufacturer J&J Sports Service and artist Anthony Ruiz, who creates custom stickers, have both emphasised the need to stock up on supplies before tariffs take effect. Some TikTok influencers have joined the trend, advising followers to buy items now to avoid higher prices later.
Efforts to pre-stock Chinese goods have driven a rise in international cargo flights from China. Bloomberg reported that data from China's Ministry of Transport showed that 3,485 international flights departed last week, the highest since March 2023 when China ended COVID-19 restrictions.
Source: www.seattle.koreatimes.com