Despite facing economic difficulties and having closed more than 60 stores across the country, Macy’s has announced that it will raise prices on some of its products, while others will be discontinued. If you’re a customer of this retail chain, here’s the reason behind this decision.
Why is Macy’s increasing its prices?
According to the company, the price hikes are a result of the tariffs imposed by U.S. President Donald Trump. In response to the shifting landscape of the retail market, Macy’s is evaluating strategies to navigate the situation and hopes to implement changes without significantly impacting its customers.
It is important to note that approximately 20% of the products Macy’s sells come from China. Currently, the Trump administration imposes a 30% tariff on imports from this country, which is one of the main suppliers of clothing for the chain.
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What is Macy’s?
Macy’s Incorporated is an American company operating a chain of stores that sell a wide variety of products, including clothing, footwear, bedding, furniture, jewelry, beauty items, and home goods. Its most iconic store is located in Herald Square and has been known as the world’s largest store since 1924.
What Brands Are Sold at Macy’s?
This department store offers a wide range of brands in categories like clothing, footwear, cosmetics, and more for the whole family.
Some of the top brands available include:
- Calvin Klein
- Charter Club
- Home Design
- Hotel Collection
- J Queen New York
- Lauren Ralph Lauren
- Michael Kors
- Steve Madden
- Coach
- Converse
- Bandolino
- Mac
- Clinique
- Chanel
- BareMinerals
- Dior
- Elizabeth Arden
- Estée Lauder
- Lancôme
- Laura Mercier
- Urban Decay
What are tariffs?
Tariffs are taxes imposed on imported goods. These tariffs benefit locally made products by giving them a competitive price advantage over similar imported goods. They also serve as a source of revenue for governments.
Why did Trump impose tariffs?
President Donald Trump has stated that tariffs are a key part of his economic strategy, aiming to promote manufacturing in the United States, protect jobs, increase tax revenue, and stimulate economic growth.
Trump seeks to revitalize and rebuild the U.S. manufacturing industry, which has lost many jobs over the past 40 years, largely due to the offshoring of labor to lower-wage countries like Mexico or China. Additionally, the president believes that the U.S. faces a significant trade deficit and that other countries are taking advantage by selling their products to American consumers.
Why are the United States and China in a tariff war?
It all began on February 1, when U.S. President Donald Trump announced a 10% tariff on all imports from China, as well as the elimination of the de minimis exemption, which had allowed the Asian country to make certain tax-free imports.
Later, on April 2, Trump ordered a 10% tariff on imports from all countries. Two days after that, China responded by imposing a reciprocal 34% tariff on all U.S. imports.
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That was just the beginning. On April 8, Donald Trump increased the tariff on Chinese goods to 84% and reiterated his plan to eliminate the de minimis exemption on May 2. China did not remain idle—it then announced an 84% tariff on U.S. imports. The Trump administration responded by raising its tariffs on Chinese goods to 125%, and China matched the figure with its own 125% tariff on U.S. products.
Which stores have raised their prices?
These are the retailers that have confirmed price increases so far:
- Walmart
- Shein
- Nike
- Adidas:
- Target
- Best Buy
- Mattel
