8mo ago

Best Buy says Trump's tariffs could force it to raise prices for consumers

www.cbsnews.com

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.

112 comments

#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.
- Nah man its at most gonna go up 12%!
  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?
Prices go up.
People stop spending money.
Revenue loss for companies.
Mass layoffs.
Job security concerns.
People stop spending money.
Go to (3)
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.
  
  Don't worry, your WaLife Plan™ 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.
  
  Deport every? No one to work the jobs most refuse to do... Means food, housing, and other shortages which makes prices go up.
  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.
  
  Deport every? No one to work the jobs most refuse to do… Means food, housing, and other shortages which makes prices go up.
  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.
- Democrats get elected next major election
  Start fixing the problem
  People get frustrated with how long it takes
  Things start getting better as Republicans get voted in again
  Republicans take credit
  Republicans start ruining things again
  Republicans blame socialism
  Go back to 1
- 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!
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.
Read all about it in this month’s issue of Duh.
Best Buy still has customers?
- I mean yea.
  I wouldn't trust a phone bought on Amazon.
  Buying on official manufacturers website take a few days to arrive.
  If someone, say broke their phone, they might need their new phone immediately.
  Also, shipping stuff can get stolen in transit, or on the doorsteps.
  
  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.
- 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.
- 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.
- It's my go-to since I've stopped supporting Amazon
- Yup they price match online competitors too.
- their brand Insignia is pretty good actually
- 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.
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.
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.
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.
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.
- not only did eating machine prices go up
  I am an eating machine.
  
  And have you checked your value on the trafficking market lately? You're way overpriced!
  
  Damn you autocorrect!
We are now in the "Find Out" stage of FAFO
Edit: Also, maybe the silver-lining of the tariff is people keeping their phone longer and not buy a new one every year.
I can only hope this also kills the 'i am a youtuber/influencer, buy my astoundingly overpriced merch' business.
- New MrBeast video: "I Got Hunted By Border Patrol" or "First to smuggle my merch across the border wins $1,000,000"
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.
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.
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.

112 comments