Are prices rising due to definitions? This is what we know

It is the most common question about the definitions: When will the prices start to rise?

For several months, shoppers from manufacturers and retailers have heard that President Trump’s barrage is one of the new definitions on almost all imports will cost them dearly. But this did not happen, and the full blow has not yet landed.

This is what is happening.

The largest customs duties continue to decline

Once again in April, Trump imposed a new tariff on Almost everything the United States importsWith the presence of Chinese goods facing a tax of up to 145 percent. stock market DecreaseTrump put the plan In stopping for 90 days. When the ninety day came in July, he extended the stopping until Friday, August 1.

Meanwhile, the tariffs were set by 30 percent for Chinese Imports and at least 10 percent for the rest of the world, while the Trump administration He tries to negotiate individual commercial deals with each country. On Sunday, Trump shook hands with the President of the European Commission yet Approval of the conditions of a new deal. The talks between the United States and China continue today.

Companies store goods to avoid paying more

Looking at the Trump campaign for a long time in favor of definitions, some companies have started storing goods early in last winter – hoping to avoid new import taxes for a period of time.

Best Buy, the electronics of Asia. The American fireworks company in Hudson, Ohio, has been stored Fireworks on July 4Almost all are made in China. Barton Operator petal from Kent island, Maryland, borrowed money for the largest possible number of husbands, collars and other supplies from China.

"We had the age of dogs in the bathroom," O’Brien, whose company sells Bidog in hundreds of storesand Tell NPR in May. "Our warehouse was exploding. We had to rent a container and put it again."

In fact, many importers rushed to their shipments that the winter ports look like a peak season-as if it was Black Friday and another Christmas on the deck-more than the quiet post-vacation.

"Many of the things that consumers have bought so far are that of the first increase," Zach Rogers, a supply chain management expert at Colorado State University, who tracks shipping and storage data, said. "All of these things came in pre -exclusions, and it is one of the reasons why we have not really received the high costs yet."

Importers hinder shipments

The importers were shocked by Trump’s advertisement in April, adding a very slope tariff not only on China – which they prepared – but also Vietnam, Mexico and other major merchant partners.

Trump has argued that foreign countries will pay his definitions, but in practice, it is American importers who suddenly faced new customs charges. Many of them responded to canceling or keeping charges abroad until the tariff plan became clear. This means that these most expensive imports are not yet here.

"Importers are afraid," Patrick Allen, an importer of French wine, is based in Columbus, Ohio. "They do not know when the other shoe will decrease."

His clients "Sitting at their hands," Allen saidInstead of setting their usual orders to spend autumn and winter holidays. A pets retailer abolished Operenan’s order from the dog’s jackets from India. Hair Barrtte Seller Rozalynnnnwin from Colubia, SC, Stop her shipments From China.

Many companies eat new costs

Suppliers and retailers who pay a 10 percent higher tariff for most imports or 30 percent for Chinese workers-to pass the full cost of shoppers who wear inflation.

"I think we raised (prices) about 10 percent and absorbed the rest," Bobby Jafi saidThe Los Angeles -based company, to import Air Fryers Air Fryers and WAFFLE IRONS from China. "It is simply impossible to transfer all of this because people will not buy the product."

Mostly, the main car makers absorb the new definitions as a profit beating. GM reported last week about the customs tariff The company cost about 1.1 billion dollars In the last quarter. Stelantis – whose commercial brands include Chryler, Jeep, Dodge and RAM – says I paid more than 300 million dollars In definitions and building fewer vehicles in general to avoid paying more.

Industry data shows car prices this summer Lower.

Delaying the tariff means delay in prices – and not necessarily periods of price outages

Trump’s summer stops for 90 days gave importers a new storage window with a low -predictive tariff. In fact, the second delay on August 1 allows many stores to fill the goods for the holiday season to avoid the high painful prices in particular during the main shopping period.

The Rogers Supply Professor believes this is the idea of Trump’s management, as retailers needed more time to get holiday stocks in a low tariff.

"He reminded me a lot when I give a home mission that is supposed to be due at the end of the chapter," He said , "It may remain five minutes, and no one has ended, and I like, “Well, you can take it home.” This is a kind of what happened with definitions and the expansion of the final dates."

But of course, all that is required for the holiday season will reach the United States before August. In addition, Rogers says the cost of storing warehouses also rises. In June, his data showed the demand for the storage space that surpassed the show for the first time since the 2022 supply chain crisis.

Retail traders raise slow prices and escape the tariff of hope

This means that higher prices are still expected, even if it is slower or less than fear in the original.

In June, inflation rose slightly, 2.7 percent A year ago, with the increase in prices in the groups that are especially affected by definitions: clothes, devices and games.

Toymaker Hasbro said on Wednesday that it now expects to bite customs duties later in the year, and it is likely to be with less damage than fear in the first place, thanks to stocks and delay. Finance Head Jenna Girl described the expenses related to the tariff as far as "Minimum," It meets it by reducing costs, nomination of budget, transferring suppliers and "Targeted" Prices increase.

Likewise, the total retail price was to June "Smile, with a limited effect of definitions," According to the data company Circana. But if Trump benefits his promise of sharp tariffs in August, Circana warns of the imminent influence on highly imported products, including shrimp, tilapia, coffeeSpices, CocoaBanana, berries and canola oil.

Many business owners hope in Trump’s original plans – for Chinese definitions of up to 145 %, for example – not pass.

"He would have put people out of work in a hurry, completely frankly," Danny Reynolds, who runs Stephenson’s boutique in Akart, said Indiana. "So I feel that this was always just a threat that was hanging by the president to start negotiations."

It depends on the customs tariff for survival as it is now, about 30 percent on Chinese goods, with the costs of dividing them between manufacturers, wholesalers, retailers and shoppers.

"If you take 30 percent and reduce it to five or six," Reynolds said, "Now suddenly it is not exciting."

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