Most experts think they will if the tariffs continue for a extensive period but most of the possible price increases have not affected consumers as of this date in a significant way.

      Trade tariffs could really affect U.S. consumers if they continue and escalate to more categories of consumer goods. More than likely everyone will be hit with higher prices on everyday consumer goods including party supplies and balloon products. Rubber: latex; rods, tubes, and other products; conveyor belts; various types of transmission belts; various types of pneumatic tires; gloves; gaskets; dock fenders are among the products affected by this latest round of tariffs.

       Party and Paper Magazine recently wrote an article on the products we are likely to see affected:

"It affects more than 5,000 goods, including industrial chemicals, electronic circuit boards and a range of consumer products. Affected products include a variety of furniture, clothing, electronics, handbags, luggage, hardware, bicycles and bicycle helmets, shampoo, perfume, dishes, bed sheets, meat and cereal.

Will U.S. shoppers see higher prices on store shelves?

Almost certainly. American retailers and manufacturers were largely able to absorb the 10% tariff – narrowing their profit margins – negotiate offsetting price cuts with Chinese suppliers, import a big stockpile of goods before the tariff took effect, and spread the added cost across many products. But a 25% duty is too much to camouflage with such tactics and a big chunk of it is expected to be passed to U.S. shoppers." http://partypaper.com/index.php/news/release/6461...

       What are some retailers doing? Retailers are stocking up on imports before the higher tariffs take affect which may shield or delay some of the price increases for consumers. Which means that in the short term the affects may not be as damaging. I have seen headlines like...

"Retail imports rise ahead of higher tariffs"

"The rush to bring merchandise into the country that was seen through much of last year slowed down after a tariff hike was postponed from January to March. U.S. ports covered by Global Port Tracker noted twenty-foot equivalent units (TEU) in March was down 0.6 percent from February, but up 4.4 percent year-over-year. A TEU is one 20-foot-long cargo container or its equivalent."

"April was estimated to be up by 7.7 percent year-over-year. May, June, July and August are also forecasted to have an increase according to the report. September is forecasted at 1.91 million TEU, up 2 percent. Imports have never before hit the 1.9 million TEU mark earlier than July. And the August number would be the highest monthly total since the record 2 million TEU record set in October 2018."

     Businesses are trying to mitigate the affects of the tariffs and over-stocking merchandise before the tariffs take affect might explain one way they are doing it. Only time will tell if their efforts will be enough to shield consumers from higher prices in the longer term.

Margaret Davis

Balloon Flowers Company

contact: customerservice@balloonflowers.net

https://www.balloonflowers.net