Talks about tariffs have been filling up newspapers, websites, airwaves, meeting rooms, factory floors and dinner tables for a while, but reality is now beginning to sink. What is the true cost of the tariffs and who is going to pay them?
[To listen to the podcast, CLICK HERE]
Many brands and retailers have already separated at least some of their supply chains from China after the last tariffs, but other countries have also discovered that they are not so safe shelters. The current tariffs on Chinese imports stand at a whopping 145%, and with most countries having a universal tariff of 10%, prices seem inevitable.
Some of these additional costs will be absorbed by the brand, some will be renegotiated with the supplier, some will be passed on to the consumer. The exact ratios vary on a case basis, even by company and product, but one truth remains. The impact will be the most difficult for small and medium-sized businesses.
Ian Fredericks, Hilco
Kathleen T Rosenberg
Here, Ian Fredericks, president and CEO of Hilco Consumer-Retail, chats with Lauren Parker, director of Fairchild Studio. Tax concerns (realistic and perceived) talk about shopping behaviors, inventory, pricing, and how the industry is best prepared and WHT companies can prepare.
“What I’m really focused on [with clients] Fredericks said: And there is a very nuanced discussion, especially when clients have borrowed formulas based on inventory volumes and credit card accounts receivable and other accounts receivable. I want to understand how they make different decisions – whether it’s about price increases, discounts, stock bringing in, stock bringing in, how tariffs affect the cost of the goods, whether it affects their percentage of total margin, and what is the impact on their cost factors? ”
[To listen to the podcast, CLICK HERE]
