Why Tariffs Mean You Should Buy Now

9.30.18

Why Tariffs Mean You Should Buy Now

As a consumer, you may be wondering how the recent tariffs that have been imposed on steel and aluminum will directly impact your life. Both these metals are obviously critical raw resources to essential commodities on a large scale, from airplanes to pipelines, and on a small scale in our everyday lives, such as major kitchen and laundry appliances. Unfortunately, the increase in tariffs on these raw metals will inevitably increase the price of any consumer goods built with these materials. But how, how much, and when?

In case you aren’t familiar with how tariffs work, they are basically a tax placed on imported goods by the government. The recently placed tariffs mean that any steel or aluminum that crosses U.S. borders from Canada, Mexico, or Europe from now on will be subject to a 25% “tax”. The increase in price will naturally cost the manufacturer more money to produce kitchen and laundry appliances. This cost will then be passed down to the dealer and then to the consumer.

Since the value of an appliance comes from more than just steel and aluminum, the 25% tariff doesn’t mean appliances will equally increase by 25% in cost. As with any change in the economy, we can’t precisely predict the actual impact until it happens. There are plenty of factors that come into play when placing a value on finished goods, some that may not be predictable until the tariffs start to impact the economy. How much of the hit will manufacturers take? Will dealers be the one to eat the cost? While we don’t actually know how much appliances will increase in price, basic economics tells us it’s a safe bet that it will inevitably increase.

Although these tariffs were already implemented back in July of this year, their initial impact isn’t as predictable. Since manufacturers typically purchase their raw materials in advance to avoid a shortage, there is likely an inventory of these metals currently in stock. Therefore, the prices likely won’t rise until this stock is depleted and manufacturers must use the newly taxed steel and aluminum.

Unfortunately, steel and aluminum are not the only products subject to new tariffs. Just last month 10% tariffs were imposed on up to $200 billion worth of products from China. Amongst these products is $10 billion in home remodeling products, namely flooring, cabinets, and countertops. What’s worse, this tariff will likely increase to 25% starting January 1.

So what can you do to defer the price tag increase? If you were planning to upgrade your appliances or remodel your kitchen in the next few years, you shouldn’t put it off any longer. The time to purchase products is now. Here at Happys, we love to pass down the savings to our customers whenever we can, which is why we always offer an incredible selection of both new and scratch and dent appliances. Visit your nearestHappys Appliances store to check out our specials or visit our online store today.