Summary
Best Buy warned that Trump’s proposed tariffs on imports from China, Mexico, and Canada could raise prices on consumer electronics, as 60% of Best Buy’s inventory comes from China.
Trump plans to impose a baseline 10% tariff on all imports and a 60% tariff on Chinese goods to boost domestic manufacturing.
Retailers like Best Buy and industry groups like the Consumer Technology Association are preparing for supply chain disruptions by importing goods early or sourcing alternatives to avoid higher consumer prices.
It WILL raise prices and it will raise prices by more than whatever percentage the tariffs are set at because as we all saw from the recent greedflation, businesses will use any excuse to raise prices as much as possible, particularly in industries dominated by an oligopoly (which is most of them).
Greedflation worked because the consumer could absorb price increases to a certain extent after Covid.
While greedflation will be a factor this time around. I don’t think it will be as prominent as it was post covid. The consumer is tapped out and is just not buying anymore. People are not going to buy electronics at 60% or higher prices. They will go cheap or just do without.
Trump is either using the threat of tariffs as a negotiating tactic to get something out of our trade partners or Trump will repeat history and be like Hoover. We’ll have a stock market drop, rampant stagflation and a Recession / Depression on his watch.