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AutoZone acknowledges that tariff costs will go back to the consumer

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Yahoo Finance reports that the CEO of automotive retail giant AutoZone admits that if tariffs go into effect, the the consumer will undoubtedly incur higher costs.

Philip Daniele said during its November 2024 earnings call that the company already anticipates increases in product costs, and if tariffs are added, the customer will have to pay. “If we get tariffs, we will pass those costs back to the consumer,” Daniele said. Under his leadership, he understands that recent policies imposed by the Donald Trump administration will impact margins.

The tariffs, which include a tax of 10% to 20% on all imports and potentially 60% to 100% on goods from China, have increased concerns amongst consumers and corporations trying to protect their profits. AutoZone is just not the only company that relies heavily on imported goods from abroad and is preparing for dangerous changes. Footwear conglomerate Steve Madden has already taken motion. Since 70% of its sources come from China, the company announced that it will cut ties with them by 50%, partnering with other foreign entities equivalent to Vietnam, Cambodia and Mexico.

However, shoe fanatics should already expect price increases as leadership deals with changes affecting the supply chain.

Columbia Sportswear and the National Retail Federation (NRF) have expressed concerns that tariffs will make their profits less inexpensive, potentially driving customers away. The world’s largest retail trade association described the proposed tariffs as “a tax on American families.” He issued a warning that prices of on a regular basis goods equivalent to food and clothing would rise sharply. In the association’s report released Nov. 4, Jonathan Gold, vp of supply chain and tariff policy, said U.S. consumers could expect to lose between $46 billion and $78 billion in purchasing power because of this of additional tariffs.

A $90 pair of sneakers can cost between $106 and $116, while a $100 coat can cost over $20.

During the campaign, President-elect Trump “promised to ‘slow inflation,'” but U.S. Treasury Secretary Janet Yellen warned that tariffs would only increase it, and an evaluation by the Yale University Budget Lab supports her theory.

“The consistent theoretical and empirical conclusion in economics is that the burden of tariffs is borne by domestic consumers and domestic firms, not the foreign country,” the mid-October 2024 report revealed.

Some corporations are suspending any emergency motion until Trump actually makes a move. ELF Beauty CEO Tarang Amin says he will have to read the policy first before even fascinated about increasing prices.

“We don’t like tariffs because they are a tax on the American people,” Amin said. He revealed that the company has had to cope with tariffs of 25% since 2019 due to policies in place since Trump’s first reign in the White House. “During this time, we have used every lever at our disposal to minimize the impact on our business and our community.”

Trump-Vance transition spokeswoman Karoline Leavitt defended the first-term tariff, saying it created jobs and curbed inflation. This time, Leavitt believes her boss will work to lower taxes and create more American jobs through additional tariffs.


This article was originally published on : www.blackenterprise.com

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