It’s not breaking news that recent updates in tariffs are changing how industries across the globe are doing business and subsequently effecting how products are being priced for the consumer. Many of you are asking if we’ll be raising our prices here at Valley Design as international trade tariffs increase. We can tell you right now that you don’t have to hold your breath – we have no plans to raise our prices anytime soon regardless of the recent uptick in U.S. import tariffs. Not sure what tariffs are or how they could affect you? Read on.
What are international tariffs?
To put it simply: tariffs are taxes enforced on imported products. Recently, the U.S. increased their import tax to 25% on $200 billion worth of Chinese goods.
How do international tariffs affect consumers?
When imported goods cost more, someone – either the business or consumer – is responsible for footing the bill. The increase in expense is handled one of three ways:
- The business can absorb the expense to keep prices stable for their consumers.
- A business can increase prices for their consumers to compensate the extra expense.
- The business can split the difference between their consumer by raising their prices slightly.
While we don’t like saying “No” to our clients, we do love saying “No” when our clients ask if we’re raising our prices. Should that answer ever have to change in the future, we promise we’ll communicate early so you, our client, are never left in the dark. If you have any other questions, please call our customer service team at 507.268.4221. We look forward to continuing to provide quality American-made products at fair prices.