Economists have raised concerns about the impact of tariffs on consumer prices and manufacturing in the United States, particularly those implemented during the Trump administration. These tariffs have not resulted in the promised resurgence of American manufacturing, leading to ongoing questions about their effectiveness. Economists have noted that the effects of high tariffs can vary across industries and may not manifest uniformly. Instead of immediate price increases, consumers may experience gradual hikes or supply disruptions.
One significant change occurred in September when the U.S. suspended the de minimis rule, which previously allowed small packages valued under $800 to enter the country without tariffs. This alteration impacted many consumers, especially those who ordered goods from international sellers. Consumers are now required to check shipping origins carefully and must be aware of potential tariffs on their purchases.
According to a Goldman Sachs report, American consumers have absorbed up to 55% of the tariffs imposed, and this figure may continue to rise. Although some companies initially managed to shield consumers from these costs, they are now exploring ways to reclaim profits affected by tariffs. Moreover, the rising costs are not restricted to imports; domestic goods, including those made in the U.S., have also seen price increases due to reliance on imported components.
Businesses are adjusting to the new tariff landscape, with companies like Orvis and Carter’s announcing store closures and downsizing due to the financial pressures posed by tariffs. The recent customs changes have left many shipments delayed or stuck, further complicating the shopping experience for consumers.
As the holiday season approaches, concerns linger regarding supply chains and the availability of imported goods, particularly for popular items like Christmas decorations. This situation raises questions about the effectiveness and long-term implications of current trade policies, as the Supreme Court is set to review challenges against these tariffs.
Source: https://www.theverge.com/column/811549/trump-tariff-shakedown