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Pepsi, Coca-Cola, GAP, Winnebago, etc. raising prices to offset import tariffs
https://www.businessinsider.com/trump-tariffs-make-coca-cola-gm-more-expensive-2018-8* In September, President Donald Trump hit China with tariffs on $200 billion worth of Chinese goods. This was the first time that consumer goods had been directly impacted by Trump's tariffs.China retaliated by announcing tariffs on $60 billion worth of US goods sent to China.
* Trump imposed tariffs on manufacturing goods earlier in the year. He said import taxes are meant to help US manufacturers by making foreign products more expensive.
* Several companies have either already raised their prices or say they plan to as a result of the tariffs.
President Donald Trump's tariffs are leading to higher import costs for US-based companies, and it's American consumers who are likely to bear the burden.
In September, Trump hit China with a 10% tax on $200 billion worth of Chinese goods. This was the first time consumer goods had been directly impacted by Trump's tariffs
While the White House has pointed to national security issues as justification for the tariffs, there's also a practical economic component to Trump's duties. The tariffs on foreign imports are designed to make foreign goods more expensive and therefore US manufacturers and products more appealing.
The latest tariffs, along with previous rounds on $50 billion of Chinese goods and metal imports, will mean that more than half of all Chinese goods coming into the US will be subject to the import taxes.
"The new tariffs are bad news for the retail sector, especially as the latest round seems to extend the tax to a vast array of consumer goods. Many retailers will now be faced with a difficult choice of whether to pass the cost increases across to consumers or to take a hit on their margins," Neil Saunders, managing director of GlobalData Retail, wrote in a comment emailed to Business Insider.
"Fortunately, the consumer is currently in a position to cope with some mild rises in retail prices. However,
a rise in prices across the board will likely result in a decline in retail volumes over the longer term, which will be unhelpful to the secto
r," he added.....Continued at link
9 replies
= new reply since forum marked as read
= new reply since forum marked as read
helpful!
