Time is running out before tariffs raise prices
of ConsumerAffairsMay 5, 2025
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With a 145% tariff on Chinese imports looming, retailers are advising consumers to buy now before prices rise due to potential supply shortages and cost increases.
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Brands like Beis, Bare Necessities, and Fashion Nova are using the tariff situation in advertising to emphasize urgency, warning that current prices may not last.
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Analysts caution that encouraging early spending might hurt long-term profits, potentially depressing future earnings if consumer demand drops in later quarters.
Amid the tariff turmoil, U.S. retailers have a word of advice for consumers: if you are consideringa major purchase, dont wait. Tariffs have yet to raise prices significantly but time is running out.
CNBC reports some direct-to-consumer brands like Beis, Bare Necessities, Fashion Nova and Knix have used tariffs in advertising campaigns, pointing out that prices may not stay the same for much longer.
With a 145% tariff on Chinese imports, some U.S. retailers has postponed or canceled orders, which could eventually lead to shortages and higher prices for existing goods. Other companies have switched to suppliers in other countries that face lower tariffs. However, even with lower tariffs prices will likely rise.
Another complicating factor for retailers is that many of the imported products they sell are discretionary items things consumers dont have to purchase. Retailers could face a shift in consumer behavior that could affect their bottom lines.
Unintended consequences
Analysts say the buy now strategy could have unintended consequences for retailers. If sales that might have been made over the summer occur now, it could reduce second-quarter earnings. But other analysts say it might be the best of a group of bad options.
Retailers should be doing anything they can to get as much demand as possible, as soon as possible, because from our perspective, things are going to really fall off a cliff, Sonia Lapinsky, a partner and managing director at consulting firm AlixPartners, told CNBC. Weve been seeing a very skittish customer since about February, March, and its only gotten worse as the tariff talk has gotten kind of more constant.
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#Dont #wait #buy #retailers #urge