NRF on Tariffs
I know what I know, and I know I do not fully understand tariffs. That’s why I am leaning heavily on the National Retail Federation and their take on tariffs as they relate to retailers.
The association representing retailers’ interests released this statement about the Trump administration’s tariffs imposed on Canada, Mexico and China:
“We support the Trump administration’s goal of strengthening trade relationships and creating fair and favorable terms for America.
“But imposing steep tariffs on three of our closest trading partners is a serious step. We strongly encourage all parties to continue negotiating to find solutions that will strengthen trade relationships and avoid shifting the costs of shared policy failures onto the backs of American families, workers and small businesses.
“The retail industry is committed to working with President Trump and his administration to achieve his campaign promises, including strengthening the U.S. economy, extending his successful Tax Cuts and Jobs Act, and ensuring that American families are protected from higher costs.”
The 25% tariffs imposed on Canada and Mexico and the 10% tariffs (in addition to the current 25% tariffs) were announced February 1. Just days later, it was announced there would be a delay in implementing those tariffs imposed on Canada and Mexico. NRF’s Executive Vice President of Government Relations David French, released this statement on the delay:
“The announcement that tariffs for Mexico and Canada have been delayed is good news. This will allow for diplomatic solutions to be pursued in order to help stop the illegal trafficking of fentanyl into the United States as well as receiving more help from Canada and Mexico to secure our northern and southern borders. It is important that these talks continue in earnest with tangible results so that our long history of cooperation with our North American neighbors continues, and that massive new tariffs are seen only as a measure of last resort. The retail industry remains committed to working with all parties to ensure continued economic security and opportunity for the consumers we serve every day.”
Okay, so as of today the tariffs for China are still on. How will this impact your goods and your business in the next 30 days? The next 90? Are you implementing any strategies in the case of all the tariffs happening at once? Drop me a note about it HERE.
Stressed But Buying Anyway
A recent edition of the Retail Brew newsletter revealed the results of the Consumer Stress Index prepared by the Kearney Consumer Institute. And the results are, well, humans are a complicated animal. I say that because the survey of 24,000 consumers across 12 countries found that consumers are concerned about prices but are still buying stuff anyway. As Retail Brew put it, “Consumer behavior can be more accurately measured using consumers’ personal situations rather than their feelings about the economy.”
The Index found that 85% of consumers said they feel the impact of prices at the grocery level, but more than three-quarters of them said affording food “is generally not a concern or occasionally concerning.”
The report noted that while some may be facing sticker shock, they’ll likely get used to elevated pricing and stop thinking prices should be much lower than they are. That reminds me of the cartoon of a lobster sitting in a pot with the water slowly increasing, and it says, “This is just the perfect temperature.”
Katie Thomas, the lead on the Kearney Consumer Index, stated that consumers are working to get the most bang for their buck for the items they “need” and focusing more on the “wants,” like dining or recreation. Here’s the question for you—can you appeal to both customer sets shopping for your products? What do they “need” from you and can you help them feel they are getting the most bang for their buck while also offering stuff they really “want,” i.e. items they feel they can splurge on?
The Problem Solvers
I’m flipping through my notebook and scrolling through my camera pics, and I can tell you that I will be discussing faves from last month’s Tropical Plant International Expo for a while. I’ll dose them out a few at a time.
I have four new ones for you this week, none of which won the TPIE nor Cool Product Awards. These are my own highlights of the show. Two solve some sort of consumer problem, and two are some fun plants.
Starting with the consumer problem solvers, let’s discuss the Cowbell Self-Watering Kit from Cowbell Plant Co. If you’re gone for a long time and those inverted water bottles just do not provide enough water for your precious houseplants, the Cowbell Self-Watering Kit comes to the rescue. Invented by an MIT grad (and former business banker), the device is a lot different from the upside-down wine bottle options that release a slow but constant drip. Those water plants maybe up to 10 days. The Cowbell will water up to 35 days (depending on the plant) thanks to its patented pressure regulation technology. And while it looks like a beautiful glass bottle, it’s actually a BPA-free, luxury PET sourced from Japan. Available in two sizes—750ml and 250ml.
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Ellen Wells
Senior Editor-at-Large
Green Profit
