I was wondering whether some goods that were destined for the US market could end up elsewhere at cheaper prices as manufacturers try to get rid of inventory?
I guess 110v appliances will not be compatible here, but maybe there’s an opportunity to get some things more cheaply?
That would be a desperate measure. Lower sales in the US means lower overall revenue for sellers. Selling at a lower price means lower revenue and lower profits.
Also, there’s a 90 day pause for tariffs. If any, all production is shipped now to the US. So, higher price now, potential for lower price after July. But, it all depends on how Prez Trump is feeling that day.
I heard about some concerns that cargo would be dumped in the sea rather than incur the import tariffs.
No pause for China.
I expect to see some lower price offerings, better something earned than nothing
In case of emergency, ships can be derouted to Canada or Mexico. Unload containers there and think about what to do next. Of course, don’t expect more container ships coming next after that happens.
I don’t see anyone dumping a 40ft container in the water. Even the empty container has a value, and quite funny to see the crew of the ship trying to push the container overboard by hand. Most large container ships don’t have cranes on them.
It wouldn’t matter if they did have cranes. Some of these container ships carry 20 thousand containers.
It’s first-in, last out so even if they did have a crane, they’d never be able to sort the containers to find the ones they wanted to dump.
Sink the ship and claim insurance
There is a possibility that may give us cheaper stuff.
Take Apple or HP laptops assembled in China. There’s significant markup because of branding. If Chinese manufacturers can convince consumers that there’s no need to buy the 1k USD branded laptop because there’s a 300 USD generic option. The 100% tariff will make the brand laptop cost 2k while the generic one only 600 USD.
So, tariffs may kill US companies that put a big mark up on Chinese manufactured products. If the world starts buying directly from Chinese manufacturers, stuff may be cheaper.
100% tariff does not (necessarily) force a doubling of the retail price. It depends whether the importer aims to keep the profits constant or the profit rate (which would increase profts).
Since $1k for an iphone is probably already the highest the market is willing to accept, Apple is likely (forced) to aim for the former. So if 100% tariffs are levied on $300 import price per phone, with domestic costs largely unchanged, the new price should be closer to $1300 than $2000.
If tariffs lead us into recession, they may also give you less money to spend. I rather forego my chances of buying even cheaper crap.
That may be so, but you don’t have the choice. We have to play with the hands we are dealt.
I’ve heard that in Canada some fruits have become cheaper as they started to supply them not from the US but from South America
DFS have got an Easter weekend sale on.
Do you think it’s because of the tariffs?
Definitely possible but most depends on transportation and that means air transport. Canada - S. America schedule flights are mostly wide-bodies meaning there should be space for perishables.
It could be quicker as much of the current US origin fruit and veg are trucked from California, even to Eastern Canada.
preferably have insurance with an American company.