Trump's win could lead companies to push up prices. Here's why.

[LetMyPeopleVote]

The business community is very worried about trump's tariffs and are already taking actions to protect themselves.

Link to tweet

https://www.cbsnews.com/news/trump-victory-china-tariffs-taxes-inflation/?ftag=CNM-00-10aab7e&linkId=645094473

As President-elect Donald Trump readies to return to the Oval Office, U.S. retailers that depend on foreign suppliers are prepared to pass along the cost of his proposed import tariffs to consumers, potentially leading to higher prices for a range of products.

Americans stand to lose between $46 billion and $78 billion in spending power each year on products including apparel, toys, furniture, household appliances, footwear and travel goods due to the new tariffs, the National Retail Federation stated in findings released Monday.

"Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices," NRF Vice President of Supply Chain and Customs Policy Jonathan Gold said in a statement. "A tariff is a tax paid by the U.S. importer, not a foreign country or the exporter. This tax ultimately comes out of consumers' pockets through higher prices."......

Businesses have also stocked up, placing bigger-than-usual import orders ahead of new tariffs taking hold, as the U.S. imported 11% more Chinese products in July and August than they did during the same two-month period a year ago, according to the Census Bureau.

[msongs]

1. go for it donald, 100 per cent tariffs on everything nt

[unitedwethrive]

2. Also keep in mind

that many retailers used the COVID supply issues as an excuse for far longer than necessary to keep their prices high. We are still seeing this happening in both actual goods and throughout the service industry. Businesses understand that once consumers get used to paying higher prices, they often don't need to lower them to maintain sales. (Especially in this era of so many monopolies and near-monopolies.) The result is record profits for many businesses that is reflected in top salaries and stock prices, but not passes down to employees or the consumer.

The same thing will happen with the tariffs. Businesses will use it as an excuse to raise prices, likely more than is necessary to cover costs, because after a small adjustment time people will pay it if they want the good or service. It's economics 101 - supply and demand.

[Jack Valentino]

3. Banks are already starting to raise mortgage rates, "in anticipation of Trump economic policies"

and Trump isn't even in office yet.

[Mad_Machine76]

4. I assume

That many of these businesses donated large sums of money to him?

[Klarkashton]

5. Trump's promise was that those items will now

Be made in the USA !

The tariffs would a lot cheaper for the consumer than those things made here after all is said and done. JFC the shit people believe

[Irish_Dem]

6. They will also use it as an excuse to price gouge.

It's the American way.

[LetMyPeopleVote]

7. Here is more on companies using available funds to order supplies/product before tariffs

Link to tweet

[spinbaby]

8. On a practical level, how do we prepare?

My first instinct is to not spend any money I don’t have to, but the looming threat of tariffs and inflation might make it wise to buy some things before I otherwise would. Might be time to upgrade my phone, for instance, even though I would ordinarily wait another year or two.

[Emile]

11. If you are invested in the market you may want to

seriously look at S&P 500 American companies. Less volatile and more stable.

[Deminpenn]

9. This is why there won't be any

new, remember there are some already in place, tariffs.

The whole tariffs idea was linked to getting rid of federal income taxes. That's not happening.

[LisaL]

10. On a bright side,

MAGATs will soon realize that what they got for voting for Trump is the opposite of what they expected.
Oh well...