The tariffs proposed by President-elect Donald Trump have already been implemented I started turning the business around In many industries and many of them take action to protect their profits. Tariffs, which include a 10-20% tax on all imports and potential 60-100% on goods coming from Chinais causing significant concern – and the costs are likely to hit directly into consumers’ wallets.
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Philip Daniele, CEO of AutoZone (NYSE:AZO), has stated unequivocally that if these tariffs are imposed, consumers will bear the cost. On a recent earnings call, Daniel said: “If we get tariffs, we will pass those tariff costs on to the consumer.” The company expects to raise prices even before the tariffs take effect, anticipating how these new policies will affect its profit margins.
Many other companies, especially those that rely heavily on foreign suppliers, are also preparing for potential price increases, so AutoZone is not the only company preparing for these changes.
Steve Madden (NASDAQ:SHOO) is one of the first companies to take this step. The shoe retailer, which imports 70% of its products from China, It announced that it would reduce its reliance On Chinese production by half, moving to places like Vietnam, Cambodia and Mexico. Even with these changes, customers should expect price increases as Steve Madden manages higher expenses associated with the impacts of tariffs and changing supply chains.
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Columbia Sportswear ( NASDAQ:COLM ) also raised concerns about how tariffs will make it more difficult to maintain affordability for its products. According to CEO Tim Boyle, the company may have to raise prices to cover the additional tariff charges.
the National Retail Federation They expressed similar views, calling the tariffs a “tax on American families” and warning that the cost of everyday goods such as furniture, shoes and clothing could rise sharply.
According to their research, a $90 pair of sneakers could cost between $106 and $116, and a $100 coat could cost up to $21 more. Shoe companies in particular are concerned that since nearly 99% of all shoes sold in the United States are manufactured abroad, it will be difficult to move production to the United States any time soon.
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Stanley Black & Decker (NYSE:SWK) is another company planning to deal with the potential impact of tariffs. According to CEO Donald Allan Jr., the company was considering several options, but manufacturing its goods in the United States was not considered practical due to financial difficulties. Instead, they will likely pass on any higher expenses to customers. “Clearly out of the gate, there will be price increases associated with the tariffs that we put into the market,” Alan said.
Even dollar stores are not immune. Dollar tree (NASDAQ:DLTR), which imports many of its goods from China, may have to rethink its fixed price point model of $1.25 per item if tariffs drive up costs significantly. Like other importers, the company faces a difficult choice – absorb higher costs, which would hurt profits, or raise prices, which could challenge its value-focused business model.
For now, many companies are waiting to see what will actually happen with the proposed tariffs, but one thing is clear – if they go into effect, the cost of imports will rise and these increases will likely trickle down to consumers.
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This article “We will return the tariff costs to the consumer,” says the AutoZone CEO. Here’s a look at other companies raising prices Originally appeared on Benzinga.com
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