The proposed new tariffs on Chinese imports haven't been enacted yet, though Friday President Donald Trump threatened such a tax at "short notice." Extra fees would have implications for prices on many consumer goods, but would tariffs impact holiday sales this year?
Larger retailers might not feel the effects immediately since many manufacturers have likely stocked up in anticipation, but smaller retailers unable to warehouse extra inventory could feel the squeeze sooner.
Retailers also aren't likely to pass along price increases to the consumer during the holiday season, one of the most important annual shopping periods. We expect 2018 holiday ecommerce sales to grow 16.2% and take 23.5% share of the full year's retail ecommerce sales.
Heading into 2019 will be a different story, though, as tariffs on products and raw materials for the top selling US ecommerce categories will take effect.
Computer and consumer electronics is the leading US retail ecommerce category with 2018 sales of $115.08 billion. The repercussions of tariffs for Apple are lower than some consumer electronics manufacturers, but for anyone who sells TVs, in particular, there could be trouble on the horizon.
Televisions, video projectors, clocks and watches are among the products subject to tariffs while raw materials such as computer chips that power PCs and smartphones, parts of printers and copy machines and TV parts were also included in the proposal. Brands like TCL, LG and Vizio would be most affected, which would ripple outward to retailers, especially Best Buy, one of the last remaining big box consumer electronics specialists.
A May 2018 joint study by the National Retail Federation (NRF) and the Consumer Technology Association (CTA) came to the conclusion that TVs imported from China could see price increases of 23% and all other imported TVs' prices would increase by 4% if proposed tariffs were enacted.
Furniture and Home Furnishings