Beware of rising prices that are actually PRICE GOUGING.

[WarGamer]

Here's an example...

At Lowes, a Kobalt screwdriver. Made in China

It's currently 8.98 in-store.





someone is going to think wow 54% tariff, now $14 right?

ummm. No.

As someone who has BOTH imported things into the US from China AND mfg'd items here and SOLD to China...

I'll explain.

Tariffs are calculated on "item Cost"

The item cost for that screwdriver is probably... around $1.00

Then Lowes adds approx 100 other items to the cost of that screwdriver to determine the price in-store.

The 2024 tariff was 20% and now it's 54%

So the "item cost" has gone from $1.20 to $1.54

An increase of 34 cents.

So... the price of that screwdriver SHOULD go to around $9.49

[Squaredeal]

1. They will charge whatever the market will bear.

It has nothing to do with price gouging. Assuming the import goes up in price, so will the comparable American-made item because of their determined position in the market.
My guess is that everything will go up in price, foreign and domestic.

[newdeal2]

10. Yes American companies will raise their prices alongside foreign companies

And they will stay stuck up permanently.

[dutch777]

2. Good point. Whether tariffs that INVITE gouging as an excuse or just tariffs, hope everyone remembers who's to blame

[underpants]

3. I didn't know that's how they were calculated

Item costs.

[WarGamer]

4. Typically stuff from China is VERY cheap.

I mean a designer blouse or dress shirt might be $3.25

But then add cost of ocean freight shipping, warehouse charges, customs charges, duties and tariffs. And then cost of shipping to the US company.

Then add marketing costs, labor costs, etc...

EXPRESS might import that shirt at $3 but it's accounting cost might be $9.

Tariffs are calculated at the cost of the item charged by the China mfg

[underpants]

11. I have an item I'm pretty sure I bought at a Dollar store 30+ years ago

It’s a steal hatchet with a hammer and crowbar end on the top. My daughter asked me if I had a Zombie weapon (running joke in this household) and I told her was it was on the wall in the garage. She came back and said “that’s a good Zombie weapon Dad”

I can’t imagine who made that and what situation. For a dollar. I’ve been in a foundry (Grinnell) and it was in the top two of horrible places I’ve been in (shopping cart factory).

[BannonsLiver]

5. So Tariffs aren't a big deal.

Got it.

[WarGamer]

7. I'd suggest looking at US alternatives.

Klein made in the USA



Tariffs are a big deal on high dollar items... that TCL TV at Best Buy that's 899... probably going up 50-100 now. That sucks.

Now stop being a bully...

[CloudWatcher]

6. Mindset

The price will become whatever the market will bear. Given lack of effective competition, there is no reason to limit price increases to only the increased costs caused by tariffs.

The news is full of how bad it is going to be, so the prices will skyrocket. People will blame the tariffs and not the greed of the supply chain and retail stores. Profit margins will be way up, but optional spending will crash. Some companies will be very happy, others will lose too much in sales to survive.

[ProfessorGAC]

8. How Are You Accountibg For Elasticity?

Also, Craftsman is selling a 14 piece, made in the US, screwdriver set for $35 @ Ace Hardware.
So, the Klein tool selection is a bit of cherry-picking.

[WarGamer]

9. lots of good US choices.