Best Buy says Trump's tariffs could force it to raise prices for consumers
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.
https://www.cbsnews.com/news/trump-tariffs-canada-mexico-china-best-buy-consumer-electronics-prices/Open linkView original on lemmy.world433
Comments105
#youvotedforthis
Man, even the Trump "I did this" stickers will be too expensive
Better stock up now.
I've been considering ordering a bunch of these.
Ah man, and I like red hats. Not MAGA, but just a nice fitted red hat. Another reason to not like the cult of 45.
Cult 45
Instead of colt 45
- My Trump supporting uncle after he survived a 12 foot head first fall and changed to extreme opposite personality
At least brain damage is an understandable reason for voting Trump. What's everyone else's excuse?
For boomers it is lead poisoning from gasoline.
Also lead in home paint.
It's (at least part of) where the 'paint chip eater' meme/joke of boomers comes from.
It is likely a contributing factor.
Millenial and gen x skewed Harris more than any other demographic.
Gen X is way smaller than both the Boomers and Millennials as a population. Even if they skewed heaviest toward DooDoo Donny of the three, I'm not sure their impact would be that important.
Which part of that cycle was supposed to fix the cost of living problems again? Last I checked, those tariffs aren't going towards universal basic income or social services.
The part where the monopolies buy up even more of the economy and we all get issued life subscription plans because they can cover everything from our housing to our groceries to our jobs. Don't worry, your WaLife Plan^tm is tailored to be affordable for your Cashier position.
I can't be arsed to actually make the meme, so here's a transcript:
[Drake meme]
Top-left panel: Drake looking away in disgust.
Top-right panel: Cyberpunk 2077
Bottom-left panel: Drake looking pleased.
Bottom-right panel: America 2025
Everything he's planning is going to have negative effects on the economy...
Deport every? No one to work the jobs most refuse to do... Means food, housing, and other shortages which makes prices go up.
Tariffs? Make everything cost more and force companies to charge consumers.
Reduce education standards? Keep everyone dumb so they vote for us!!!!
Tariffs can also backfire like with China and their retaliatory tariffs . Some US companies rely on exports for a large part of their business.
It happened the last time Trump tried it. China slapped a tariff on an ag product, soy (iirc), China stopped buying, the government bailed out the farmers. Everyone lost except China.
I agree with everything except this. If companies can't find workers, it will force them to review the pay and benefit to attract people. If it still doesn't work, the government will certainly allow immigrants to enter legally for those jobs.
Right now companies are employing immigrants with shitty pay and without any benefits. It is slavery.
In France many illegal immigrants are working in delivery jobs. People are not against doing those jobs but the conditions are shitty. So illegal immigrants are doing those because they don't have a choice and maybe it is way better than in their original country. But that is exploitation and slavery.
Oh you clearly haven't met American conservatives. They've already done this a few times. It blows up in their face every time and now they want to do it nationally.
You do realize we're talking about the fascists here, yes?
It's happened before in the construction industry very recently like the last time trump was president... I just can't find anything on it... So I can't really back this up...
But they couldn't replace those workers last time it wasn't even about paying people it was finding people who knew how to do those jobs because they were gone...
Remember people were told to go to college not to learn a trade... For the last 40 years at least... I lived through it and it fucked me over but that's not the point..
They told Americans not to learn these jobs...
Well, that and these policies shift every few years. So if you try to embrace the 'new normal' it stops being normal in short order anyway.
But in any event, it is a problem that the ostensibly "liberal" side ends of favoring making a labor class exempted from whatever rights and privileges have been granted to the legal labor class. It's also a problem that the deportation is cruel to the immigrants. Unfortunately, we don't have any policy in sight that is compassionate and empowering for those that do come to the country.
In such a case, they'd be receptive to something like DACA, which was very surgically set to grant legal status to the "obviously useful" immigrants.
But no, the same administration that demands mass deportation will let industries burn to the ground before they ramp up legal immigration.
But you are right that the other side of the argument "but we need labor without protections to make stuff cheap!" doesn't sound particularly good.
This one kind of makes me a bit sad about the two prevailing sentiments:
Heartless separation of families and forcing immigrants back into dangerous situations, frankly in the name of pursuing an ethnic purity/superiority.
Maintain an illegal labor class of folks constantly under threat of deportation so they have fewer rights and higher fear to exercise the rights they do have, so they can be cheap and abused labor.
The "grant these people legal standing" seems to never be a persistent stance. Closest we got was DACA, and even that was pretty limited. No one dares threaten giving the cheap labor any leverage.
Don't forget to throw mass Federal layoffs into the mix.
Could be even worse than that. If consumers stop spending in anticipation of the tariffs, starting the cycle even sooner
Amazing how they didn't say shit until after the election. Almost like they want to have their cake and eat it too.
Could? They will, honestly.
They absolutely will.
Either directly, because those goods are now more expensive to Best Buy and they're not about to eat that, so it'll get pissed directly on to the consumer (with a mark-up)...
...or indirectly, when any one or more of the corporate entities involved in the domestic supply chain sees that domestic goods are now cheaper than imports for the consumer, which means that they now have an opportunity to simply raise their prices to match and pocket the difference.
Nevermind that domestic supply chains often have roots in China anyway, so it's not like the domestic electronics are going to be able to hold price either, since their imported components will still be getting hit with the tariff.
My favorite part of this aspect of it in particular is that while electronics are no doubt ubiquitous, most electronics purchases are more discretionary. It's not like a car where if yours dies you are definitely buying another one. Most times, people are getting a phone because a new model came out, or they decided theirs was too slow. They're getting a new TV because they want to upgrade or found a good deal.
So when these tariffs hit and prices lurch up, expect sales to plummet as people decide they can keep going with their current electronics just a bit longer.
So congratulations, domestic beneficiaries of an electronics tariff, any profit increase you might have gained will now be more than gutted by the nosedive in overall sales!
Read all about it in this month’s issue of Duh.
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.
At least in some circles, it was ok that the customers were tapped out and not buying anymore, at least not at the same volumes.
A fair number of businesses figured out that the math works better if most people couldn't afford their product but at least some could at the higher prices. In one extreme example I recall a leaked presentation for a company that determined they could raise prices by 10 fold and still retain 10% of their customers, and that was a win because it's cheaper to deal with a smaller customer base in their case.
I know before the pandemic in my company, there was a long standing argument about whether it was better to be high volume low margin or high margin low volume. COVID forced the company to go with the high margin strategy and they decided the high margin people were right for a while. Then competitive pressures came in and proved the high volume people right, that someone in a competitive industry will make the high volume play and they will win if you don't also do high volume.
So if tariffs reduce the likelihood of one of the high-volume strategy companies participating, the remaining may gleefully go to high-margin and say forget about the masses, that's not where the money is.
Best Buy still has customers?
You have points with the others, but why would you not trust a phone bought on Amazon? People are constantly buying phones from them. I've never heard any major "don't buy a phone from Amazon" warning before.
I haven’t searched about commingling in years now, but when I did, they had stopped doing it years before. Did they restart? Seems like an old wives tale at this point.
In general, phones are tamper-sealed to ensure you're buying a new phone. So this really doesn't make sense to me.
"New" was never mentioned.
True, but you don't go to Best Buy to buy a used phone since they don't sell used phones, so I think that talking about buying a new phone on Amazon vs. a new phone at Best Buy is the fair comparison here.
The condition of the phone was mentioned, so yes. That's... kinda the whole and only point here.
Cool.
Amazon silently resells used and returned products that are sometimes resold without any inspection. If you're buying something expensive it's better to go to the original manufacturer.
I have never bought a phone from them, but every time I have had an issue with a product I have bought from Amazon, I either can return it for a refund or they refund me and I don't even have to return it.
I mean fuck Amazon for any number of reasons, but this is just not an issue I have heard about a lot of people having with phones bought from Amazon.
Would you automatically trust an SD card from Amazon?
I trust it as long as it's a Samsung and their verification app passes. They have a Windows app that checks an SD card and authenticates that it's a legit Samsung one.
I don't even know what that means. If it was in its original packaging? Sure. Why wouldn't I? Are they secretly repackaging virus-filled SD cards in like-new sealed plastic clamshells?
Because the packaging and design on the card aren't that hard to fake convincingly and amazon doesn't care where the stock comes from it all goes in the bin so to speak. So if some really good fakes get in the shuffle you could get unlucky.
Either virus-filled cards or cards that are tampered with to show up as 2GB but are actually only 100MB or whatever. I got burned twice by that from purchases on ebay.
I mean, I've been boycotting Amazon since 1999, so it isn't like I'm buying anything from them. But I really wouldn't trust any complicated/expensive electronic component from them outside of the Kindle, since that is their own product. It is too easy for Chinese companies to dupe these days.
It's unironically a really good place to buy consumer electronics, both online and in person. They're still holding on, they've crawled out of the hole they put themselves in a decade ago.
Not sure about elsewhere but in Canada they're also an online marketplace for sellers like Amazon.
I still go to Best Buy for stuff sometimes!
my last cheap unlocked phone came from there.
a neighbor just bought one of their laptop specials this week. she hadn't bought anything from bestbuy since her last one, though... in 2015.
That's probably when I bought my laptop there lol I picked up my TV there last year as they carried an Insignia "dumb" TV.
It's my go-to since I've stopped supporting Amazon
Their open box products are good value. Sometimes the product is still in perfect condition in its original packaging, and you still get the original manufacturer warranty with it, but because a customer returned it you can get it for 10% or 15% cheaper.
their brand Insignia is pretty good actually
Yup they price match online competitors too.
It functions as a good showroom to try the shit you can buy cheaper online
In my experience, their prices are the same as online stores, and in the case where their prices are higher, they price match.
Its nice if you need something immediately. Thats about the only time I buy from them, and o price match.
Imagine cars coming from Canada and Mexico, 25% more expensive, lol
Oh it'll be a shit show, don't worry. Imagine a car sold in the US that's assembled in Mexico using parts manufactured in the US from metals mined in Canada, along with electronics from China. And that's all within a single company's supply chain. There will be tariffs on top of tariffs in the auto sector.
Don't forget china.
Buick and Volvo build a lot of their cars in China now.
Basically every shop will have to raise prices then. Even a farm shop selling only their own produce, as their own production costs will definitely rise.
Honestly, bring on the bullshit. I’m so sick of these maga idiots so I can’t wait to see how this will affect them and what they voted for.
They will learn nothing because they are incapable of understanding
No, they will learn nothing because Fox News, X and right wing propaganda they listen to is very effective at shifting blame or brushing problems under the rug.
If we want to change their minds we need to pierce their information bubble that insulates them from their decisions.
Trump will pass the blame on and they will listen to him and this will affect the non-maga people too.
I can only hope this also kills the 'i am a youtuber/influencer, buy my astoundingly overpriced merch' business.
Yup and now even just that 25%/60%/+10% either.
https://nebula.tv/videos/legaleagle-trumps-tariffs-are-taxes-on-us-consumers/
Also remember that when Trump did the washing machine tariffs, not only did eating machine prices go up, dryer prices also went up because capitalism never misses an opportunity to fuck the consumer over.
I am an eating machine.
And have you checked your value on the trafficking market lately? You're way overpriced!
Damn you autocorrect!
Thank you bestbuy for making this statement after the election.
Not that it would've made any difference. I'm disgusted with my country.
Trump said himself that prices were going to go way up. There's not anybody else out there that would have made a difference. When these idiots can't afford to go to McDonald's anymore, and they find they can't get on disability they're going to change their tune far too late.
No they will just blame everyone else. They will never learn.
Yeah Trump could litterally be holding a knife to their neck and they'd continue making excuses for him. If they were gonna learn, they would have by now.
The only policy these people have is taking down their perceived enemies.
Just in time for black friday! Get your goods now before the 200% tariff come in!
Hahahaha fucking no shit. The tariffs will force everything up. The U.S. economy is going to get thoroughly fisted.
"Could"
Goddamn it I'm sick and tired of these articles pussyfooting around the issue.
Could??? Stop pussyfooting around and tell us that it will indeed cause you to raise prices.
Finally trickle down economics starts working /s
Same products will go up everywhere else. These tariffs will screw everyone.
Cool, don't need to buy a new phone. Corps squeezed and squeezed and learned about price elasticity this year and miraculously reduced prices a miniscule amount. I ain't paying $15 for a Macdonalds burger and if they think we'll pay $2k for a phone then they're in for another shit year.
This is still going to affect you. A lot. It's not just electronics going up. Where do you think the coffee comes from? Chocolate? We make so much and basically nothing at the same time
I mean, my household income is $200k, I can liquidate, and buy citizenship for me and my wife to several countries. I tried but good luck to the dumb fucks that think capital gains tax will effect your $35k a year.
“My household income is $200k” so basically, fuck you, I’ve got mine
The classic.
I mean, I was raised by a single mother, constant poverty, sleeping in my car in my 20s, went to school in my 30s and tripled my income.
You missed the thing where I was part of the Democrat party trying to convince dipshits to vote for their interests. Now, the leopards will feed, and I'll be fine.
Might be better to just say fuck them they did it to themselves. There's a severe amount of irony that the people that will be hurt worst by this were the most ardent supporters.
The day after the elections, the f****** idiots in my neighborhood were looking at stocks like they were going to tank the day of. I just want to print out the New York times from pre-World war II saying that stocks were going up on the premise that Hitler wasn't going to do anything to awful.
$200k 🤣
It’s only funny to me because I’m around this level too and it’s not like, a shit load of money or anything. Sure, it’s a lot to a lot of people but throwing the number out is 🤬ing funny.
it actually objectively is a shitload of money to anyone who isn't a millionaire. me and my partner together bring in quite a bit less than 100k a year and doubling that would change our lives forever. we might even have a hope of retiring.
No it really isn't a big number but it's well above the average these mouth breathers. I mean this was the first year I had to dial back my retirement accounts while I've been maxing out the past 5 years. So I dump $15k into my retirement instead of $23k because a bix of cereal cost $7.
FYI, I worked for a food distributor and was in meeting where they were talking about jacking up the prices during covid. PPE and essential with 150% above buy. Got told to kick rocks along with the ethics. Reported to the SEC with the paper trails and all with nothing ever happening. So to the fucking idiots in the back it's not inflation it's straight up greed and companies pushing the line as far as possible.
Overheard today "Who really cares if prices go up, anyway?" unironically.
That's when you go ahead and remember them when they were vandalizing gas station pumps with the "I Did That" stickers and crying blood when gas/diesel skyrocketed. Obviously that's different.
I bet you that the Right is going to performatively do to a few companies the kind of "don't you dare raise prices" bullying that the Democrats should have been doing when inflation had started spiking. And it's going to go down in history that the Right held corporations to account.
Public companies would sooner stop selling goods than eat those costs. Anything with a profit margin below 35% would just be taken off the shelves, and the rest of them would suffer in quality to claw back part of those lost profits.
Let me use this phrase in a different context:
Honey, did you "raise prices on consumer electronics" the front door?
Fuck Best Buy and their 15 day return policy. I've been boycotting for two years now. They will file for bankruptcy, tariffs or not, before long.
Yes AND everything “forces” companies to raise prices to consumers
Force it to rue into apartments?
Who tf goes to brick and mortar stores to buy electronics today?
I don't support trump here but like... Fuck best buy.