Businesses are employing a new tactic to boost sales, reported the Wall Street Journal on Friday: warn consumers that Donald Trump's tariffs could make them lose out on deals unless they act fast.
This comes after Trump publicly vowed to slap drastic new tariffs on Mexico, Canada, and China ranging from 25 percent to 60 percent — a policy economists warn could lead to massive price increases on energy and consumer goods.
"It is unclear what tariffs will be levied and how much they will affect prices. Companies are pouncing at a moment when fear and uncertainty are on the rise and consumer spending is showing signs of weakness. Best Buy warned of softer demand for consumer electronics, while Kohl’s and Target reported lower apparel sales in the latest quarter," wrote Suzanne Vranica. Businesses, however, appear to be capitalizing on the uncertainty by telling consumers to buy now before it hits.
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Finally Home Furnishings, for example, told online shoppers, “Pre-Tariff Sale! This is not a drill,” and that prices could soon "double." Beauty brand Jolie's Skin told consumers to “lock in our current prices” before the tariffs are implemented. And sporting goods retailer Tarptent wrote on Facebook, “These are the best discounts we will likely offer until this time next year, and with potential tariffs looming, they might be the best prices for a lot longer than that.”
Trump has denied that his tariffs will lead to price increases for consumers — because he appears to not understand how tariffs work and he believes they are paid solely by the country the goods come from.
Some experts believe Congress actually would be able to step in and require approval for the tariffs; laws currently on the books allow the president to unilaterally enact tariffs, but they must be for a defined national security purpose. The president-elect claims these tariffs are retaliation for these countries' inactivity on preventing border crossings and the flow of drugs, although border security has improved substantially in recent months due, in part, to tougher Mexican enforcement.
