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The global fashion business journal

Jul 15, 202011:15am

Trade war splashes Christmas campaign: more than 85% of retailers expect cost increases

A report by the consultant Bain&Company estimates that two-thirds of retailers in the United States will pass tariff-related costs on to holiday shoppers.

Dec 17, 2019 — 6:28pm
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Trade war splashes Christmas campaign: more than 85% of retailers expect cost increases

 

 

Trade war affects Christmas campaigns. More than more than 85% of American retailers expect cost increases due to the conflict between Donald Trump and Xi Jinping. This will cause an increase in the costs of holiday shoppers. Meanwhile, two-thirds of the retailers will pass some costs to consumers, according to a survey by the Bain&Co.

 

The study explains that the uncertainty that looms around US tariffs will increase prices by 4%, while causing a 2% drop in volume of sales. In the case of Chinese products, retailers will pass some costs to consumers, increasing the final price of the product. A fact that could impact them if they do not take measures, according to the consultant.

 

 

 

 

After about 18 months of trade war, the United States maintains tariffs of 25% on Chinese imports valued at 250 billion dollars, along with reduced levies of 7.5% on additional imports valued at approximately 120 billion of dollars.

 

The truce reached last weekend between the United States and China eliminates the tariff rise of 156 billion dollars planned for mid-December. The new rates were going to affect products such as mobiles, computers, toys and apparel.

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