As the US faces potential tariffs proposed by President-elect Donald Trump that could range from 10% to 100%, some domestic manufacturers see them as necessary to protect against foreign competition, especially from countries like China, Vietnam and Mexico.
However, an undeniable fact is the rising costs manufacturers will face due to higher prices for raw materials. These increased costs, which can go up by 10%, could hurt their competitiveness.
Concerns for importers
Businesses selling goods like air fryers, primarily produced in China, fear that Trump’s tariffs will push prices significantly higher.
For example, a $130 air fryer could see prices climb to over $200. Many are rushing to stockpile products ahead of the tariffs, hoping to avoid the increased costs.
Some are even considering shifting production to countries like Vietnam, Cambodia, Mexico and Brazil to mitigate the impact, but new tariffs on Mexican imports complicate this strategy.
Discount retailers worry tariff increases could impact affordable goods like clothing and lead to price hikes. As most of their items are priced under $20, even a modest increase could reduce consumer spending, particularly among those already cautious due to inflation.
Higher prices on consumer items could lead to lower sales and increased financial strain for American businesses.