Nine Shopping Products That Got More Expensive
Donald Trump’s new tariff regime is going to cost you a bundle.
Tariffs can be confusing financial weapons. They are often framed as being slapped on exporting countries — e.g. a 25 percent tariff on Canadian auto parts. But the tax itself is actually paid by the American importer, and then passed on to the American consumer.
Take Vietnam, a leading exporter of consumer goods to America. Trump announced a 46 massive percent tariff on exports from that country. But this is the tax rate that American importers will now pay to move Vietnamese goods into the country, a surcharge that will ultimately hit your pocketbook.
The steep drop in the stock markets Tuesday offers a strong signal about the kinds of goods that are about to get a lot more expensive — from clothing and sneakers; to cell phones and computers; to coffee and kitchen goods — thanks to Trump’s tariffs.
Stock prices reflect investor expectation of profits. Prices inflated by tariffs will decrease American consumer demand, leading to poorer sales and squeezed margins.
Below is a look at nine shopping trips that are likely to get more pricey thanks to Trump’s tariffs, based on some of the biggest losers from Thursday’s market crash.
Your Home Furnishings
The online furniture and household goods discounter Wayfair dropped a staggering 25 percent Thursday, reflecting its reliance on importing cheap foreign exports for the U.S. market. Kohl’s, a competitor with a brick and mortar footprint, also saw its stock price plummet nearly 23 percent.
Your New Computer
Personal computer manufacturer Dell was among a number of consumer tech companies taking it on the nose Thursday with a 19 percent drop in its stock price. Similarly, computer and printer seller HP saw its market cap drop nearly 15 percent.
Your Next Wardrobe Makeover
The U.S. market relies almost exclusively on imported clothing. The Gap was down more than 20 percent on the announcement of Trump’s tariffs. Higher-end clothier Ralph Lauren also took a 16 percent plunge. Abercrombie was down 15 percent. Frilly intimates are hardly exempt: Victoria’s Secret fell nearly 23 percent.
Your Next Stand Mixer
Pots, pans, and high-end kitchen appliances are often manufactured abroad. The stock price of Williams Sonoma took a nearly 16 percent bath in the Thursday tariff rout.
Your Kids’ Toys
Any American parent knows about the proliferation of cheap imported toys — which will no longer be nearly so cheap thanks to Trump. Hasbro stock, for example, took a 12 percent dive. Mattel was down nearly 16 percent.
Your New Kicks
Shoe giant Nike is famously reliant on importing its high performance shoes from factories abroad. The Swoosh took a sploosh Thursday, falling more than 14 percent. Competitor Under Armour suffered an even greater hit, nearly 19 percent. Skechers was similarly down 17 percent.
Your Next iPhone
Apple is in a class by itself in the world of high-end cell phones. The tech giant shed nearly nine percent of its market value. One estimate predicts that if Apple were to absorb the cost of Trump’s tariffs it would lead to a 32 percent decline in operating profits. Another estimate says Apple is likely to increase the price of its iPhones upwards of 40 percent.
Your Daily Coffee Run
Some companies are dependent on imports because their goods don’t grow in America. Starbucks, for example, imports nearly all its beans from countries in Central and South America, as well as Africa and Asia. Its stock price took a greater than 11 percent hit after Trump’s tariff jolt.
Your Favorite Budget Buys
Trump tariffs will hit not only higher-end consumers, but Americans on a tight budget as well. Retailers like the Dollar Tree, whose shelves are stocked with cheap foreign goods and knockoffs, took a bath Thursday, falling more than 13 percent.
