Retailers across the United States are bracing for a wave of price hikes and product shortages in the coming months due to the tariffs imposed by President Donald Trump. The threat of tariffs of up to 125 percent has already caused some stores to announce plans to raise prices within the next two weeks, leading to concerns about worsening inflation and decreased consumer spending.
The Budget Lab at Yale University has estimated that the remaining 10 percent blanket levy on most imports will result in an overall price increase of 2.9 percent, costing the average household around $4,700 annually. This rapid increase in prices is equivalent to 18 months of normal inflation occurring in a short period of time, according to Ernie Tedeschi, economics director at the Budget Lab.
The impact of the tariffs is expected to first be felt in the produce aisle, with price increases likely to begin before the end of the month. As the United States imports a significant portion of the fresh fruit and vegetables consumed by Americans, the tariffs are expected to have a direct impact on food prices.
Major retailers like Walmart have acknowledged the likelihood of price impacts from the tariffs, with chief executive Doug McMillon stating that the company is working to keep prices as low as possible by managing its product offerings. However, Kent International, a leading bicycle manufacturer, has warned that prices across the industry could rise by as much as 50 percent unless the tariffs are lowered.
While retailers stockpiled inventory late last year in anticipation of potential disruptions to their supply chains, the impact of the tariffs is expected to be felt more acutely in the coming months. Consumers may not see significant price increases in clothing and toys until the back-to-school shopping season in the fall.
Despite efforts by retailers to protect consumers from the full impact of the tariffs, it is likely that some of these costs will have to be passed on to shoppers. Some consumers have already begun stockpiling items in anticipation of price hikes, which could exacerbate the problem.
In response to the tariffs, some business owners are still grappling with how to adapt to the increased costs. Joanne Kwong, president of Pearl River Mart, a retailer in New York City, expressed concerns about the sustainability of the tariffs for small businesses like hers, noting that ultimately, the cost will be borne by the consumer.
Amrita Saigal, founder of nappy company Kudos, highlighted the challenges of navigating the uncertainty caused by the tariffs. While her business manufactures products in North Carolina and sources US cotton, certain packaging and components come from China, making it difficult to plan for price increases.
One of the industries facing significant price hikes is coffee, with 80 percent of coffee imported into the United States. Ben Fung, owner of a coffee shop in Manhattan, has already seen price increases from his suppliers due to factors like a drought in Brazil. The tariffs threaten to further raise the cost of coffee and related products, impacting businesses like his.
As retailers and consumers alike brace for the impact of the tariffs, the uncertainty surrounding future price increases and product shortages remains a concern. The ongoing trade tensions and resulting tariffs are expected to have a lasting effect on the retail industry and the economy as a whole. Then translate to B1 Indonesian and retrieve only the Indonesian text. Keep HTML tags.