Tariffs Will Make Electronics More Expensive. If You Need a New Gadget, 'Buy It Now' - Wired

[justaprogressive]

If there's one word on your mind this week, it's probably tariffs. Last week, President Trump announced sweeping tariffs on foreign goods imported into the US, setting the stage for a global trade war and stoking fears of a recession. A blanket 10 percent tariff on all imports kicked off on Saturday, April 5, with additional reciprocal tariffs on 60 countries to take effect by April 9.

It's a wildly dynamic situation that's changing by the day, but you might wonder how this affects you. The first thing to know is that tariffs are paid by the company importing a product into the country. In short, that fee affects their bottom line, so companies often pass those costs on to consumers by increasing the price of the goods.

Here's an example from Jason Miller, a professor of supply chain management at Michigan State University: Let’s say a laptop costs $400 at import in the US. A retailer would then add an average gross margin rate of 30 percent—how much revenue the retailer retains after deducting the cost to produce or acquire the item—and that laptop will now cost $571. That's the price you'll pay at a big box store.

China exports a lot of laptops to the US, and as of April 9, you'll have to factor in the 104 percent tariff, according to the latest figures. Based on historical data that suggests 95 percent of the tariff is absorbed by the importer, the import price jumps by $395 to $795, and if the retailer passes those costs to you, the new total you'll pay at the store is $966. That represents 69 percent inflation, and the retailer's gross margin rate is lowered to 18 percent. Basically, you pay more, and the retailer earns less.

https://www.wired.com/story/tariffs-are-going-to-make-your-electronics-more-expensive/

Huh, Wired says it's 104% as well ] https://www.democraticunderground.com/100220219662

[durablend]

1. Keep in mind

That if the manufacturer doesn't want to raise the prices to levels that make the product completely unaffordable, you're going to see them decontenting more and more. This means less features and likely shoddier components.

[FoxNewsSucks]

2. That's the Walmart way,