US retailers are using Trump’s tariff threats to encourage shoppers to buy more: report

Many U.S. companies are urging customers to buy now before tariffs proposed by President-elect Donald Trump potentially drive up costs and prices, local media reported

Throughout his campaign, Trump promised to impose tariffs of 60 percent on all Chinese goods and blanket tariffs of 10 to 20 percent on goods from other countries. On Monday, he laid out plans to impose tariffs of 25 percent on imports from Mexico and Canada and another 10 percent on goods from China, Xinhua news agency reported on Friday, citing the Wall Street Journal (WSJ).

“It is unclear what tariffs will be imposed and how much of an impact they will have on prices,” the report said. “Businesses are rushing into a time when fear and uncertainty are rising and consumer spending is showing signs of weakness.”

Most large corporations have not yet integrated warnings about possible tariffs into their marketing campaigns, and perhaps they don’t even do so explicitly. However, several indicated that they may have to pass on higher costs, the report said.

“According to a recent study by the National Retail Federation, tariffs can potentially cost up to $78 billion in purchasing power per year. Small business owners said they fear higher prices will cause shoppers to spend less money and be more selective about the types of products they buy,” it said.