This could be the last truly cheap Black Friday, thanks to Trump's trade war
AP Photo/Evan Vucci
- Black Friday 2018 could be the last truly cheap Black Friday due to incoming tariffs from Donald Trump's trade war with China.
- 2018 has not seen widespread increases because the tariffs are not all in place yet, and take time to filter down to consumers.
- By this time next year, the full effects are likely to be felt.
- "It's almost like this year and next year are two different worlds," one retail head said.
- Major outlets have said publicly that their prices are likely to go up soon.
This year could be the last truly cheap Black Friday, thanks to expected price increases resulting from President Donald Trump's trade war with China.
However, by this time next year, the consequences of measure including a 25% tariff on billions worth of Chinese goods will have made their way to store shelves, and hamper retailers' ability to offer rock-bottom prices.
Christopher Shaker, a consumer products analyst and partner at consulting firm RSM, told CNN Business: "Once you get to that 25% mark, that's when you're going to see more price increases for the end consumer."
Major outlets like Costco, Walmart, GAP, Coca-Cola, and General Motors have commented publicly on the tariffs, and said they either plan to increase prices to cope, or are already doing so.
Charles Sykes/AP Images for Macy's
Billions worth of Chinese goods, including handbags, wallets, and perfumes, have been subject to a 10% tariff since September, which is due to increase to 25% in January 2019.
But this hasn't had a big effect on consumers this year, as many of the items were priced before the tariffs came into effect, Rick Helfenbein, president of the American Apparel and Footwear Association, told CNN Business.
Therefore two upward pressures will hit at once in 2019: prices will catch up with the 10% tariff, and then be clobbered again by the hike to 25%.
Kamil Krzaczynski/Getty Images
But Chinese trade negotiators canceled preliminary meetings with the US this week.
Around the same time, the Trump administration released a report which said that Beijing has done little to placate the US.
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