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Maxwell Cohen knows the tariffs are coming. President Donald Trump openly threatens the campaign's trade war, and entrepreneur Cohen listens to him. His company Peelaways sells disposable and waterproof sheets made in China that are popular among home and home care workers. The price elasticity of single-use goods is only too much, so he is ready to absorb the tariffs he estimates about 15% to 30%, while shelving more stocks before prices soar. It would be sad, but it works. He thinks most of his numbers work. But when people plan, Trump smiled.
The latest figure for government tariffs on China is 145%. Prices for certain commodities are expected to continue to climb; last week, Trump closed the smallest loophole in China and Hong Kong that exempted them from tariffs on goods worth $800 or less, and for many countries, widespread tariffs will still be in effect. For any business that cannot swallow the price of imported goods and can be hugely price increases, the first step is to decide whether to pass on the cost to consumers. If the answer is yes - usually - the next decision is how or whether to let the client know.
Tariff transparency has recently become the headlines of the domestic front of Trump's trade war. back Punchbowl News Amazon is considering adding a line showing the tariff costs of each product on its website, and White House press secretary Karoline Leavitt publicly humiliated the company's humiliation on her briefing room podium, calling the move "hostile and political act." CNN reported that a "angry" Trump is called Amazon founder Jeff Bezos. Representatives of the company quickly denied that they had approved the idea, adding that it was never a consideration for Amazon’s main website, but a consideration for its spin-off store Haul.
While U.S. companies with large name brands are most likely to arouse government anger over displaying tariff surcharges, other businesses have tough options in how to raise prices. The result is a risky activity of choice in managing public perception. Screenshots of online clothing company Triangl's checkout page are all the rage because of the astronomical "responsibility" surcharge. Chinese e-commerce giant Temu has added import fees to some of its products on its website. Luxury brands are not immune either: Hermes announced prices to offset tariffs, and Prada plans to raise prices later in the summer uncertainty. Meanwhile, some business leaders do not divide words. American shower filter brand Jolie Skin Co tells information The checkout page will add a "Trump Liberation Tariff" line. "We didn't technically raise the price," Ryan Babenzien, the company's CEO and founder, wrote on LinkedIn. "We think transparency is the way to go here, and I gave all the credibility for his decision."
Transparency is a high-line behavior. tariff It's a politically loaded word that some companies hesitate to invoke it out of fear of alienating their customer base or inciting government anger. But pointing your finger at the tariffs can also help transfer liability. Small business expert Mike Michalowicz told me that prices are rising without a clear explanation of the risks. Just make certain businesses profitable before “the customer will not only doubt them, but everyone.”
The gaming industry is a great example. Nintendo has a huge manufacturing industry in China, and last month announced that the Switch 2 console will be launched at the original price, but some accessories will cost more than previously expected. Representatives of the company attributed the update to "changes in market conditions." If that sentence sounds familiar, the explanation provided after announcing the Xbox Price rise last week is almost a word, which will be as high as $100 for some models in the U.S. The lack of T-word is an obvious omission. This muddy messaging may help lift companies out of government malice, but it has drawn opposition from clients who quickly blame good old-fashioned greedy motivations.
If some companies are worried about opportunities, others are trying to cash out while they can still make money. Marketing 101 teaches you to distinguish a company from your competitors, and Business 101 says you want to transfer inventory before the economy develops. What better way to cut prices than to cut prices when others raise them? Sales of “Telif” are emerging among furniture companies, fashion retailers and automakers. Their basic information: Get it before you can't afford it.
Ford's latest movement "from the United States. As Audi suspends imports of cars to the United States, automaker hem and Haw's price changes, Ford has been touting the deep origins of its car prices in the U.S. industry since last month. It's a strategic strategy - Ford has reported double-digit sales increase (although Caredge's analysis found that some of Ford's more popular vehicles had better deals in March, and before employee pricing came into effect). Other automakers in U.S.-made models, including Mercedes and BMW, are looking to temporarily consume the tariff costs of certain vehicles to prevent price increases. But this generous expiration date may be coming: Last week, Ford's CEO went to CNN and couldn't say whether prices would rise in the summer.
There is so much uncertainty left in Trump's trade war, and some small businesses attribute to the wires. Many of them don’t have cash to store inventory or storage space to keep it. The owner of the American vegan company Rebel Cheese has about a month to decide what to do. Most of their cheese relies on fair-trade cashews imported from Vietnam, which faces a 46% tariff and its stocks are declining. The company had already experienced a round of layoffs a few weeks ago. At this point, one of the co-founders, Fred Zwar, told me that adding at least 10% of the price increase seems inevitable. They are considering breaking down customer numbers when announcing changes, but the sharp fluctuations in Trump's tariffs make timing tricky: "We can't do price increases today and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say, and say Hey, they're up 90%. We need to increase the price tomorrow,” Zwar said.
All of this is like skinned déjàvu. Cohen handled Trump's evoked tariffs during his first term, which also coincided with the 19-year-old economic downturn. He fired all six workers and restructured his business to keep him alive, giving him two suite C executives overseas. This time, he is conducting a streamlined operation and slowly raising the price by $1 until he reaches 15%. His plan is to test different newsletters to measure feedback from his customer base: one will include standard fares (care staff tips, customer reviews), and the other will acknowledge the impact of tariffs on pricing. But even though he has experienced it before, Cohen is not sure he will do it again. "We all hold our breath," he said.
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