As Trump's trade war with China grows and the possibility of high tariffs on other countries lingers, companies have begun to pass costs on to consumers.
China, one of America's largest trading partners, faces a minimum tariff rate of 145% on all exports to the U.S., the White House said Thursday. China responded Friday by raising its tariffs on American goods to 125%.
Trump paused high tariffs on other countries earlier this week, but others remain in place, including a 10% across-the-board tariff and a 25% tariff on imported steel, aluminum and vehicles.
Some businesses have notified shoppers of a "tariff surcharge," CBS News reported. They include Labucq, a high-end footwear brand made in Italy that announced a 10% price increase beginning April 15 that will rise by 10% in May, per CBS.
Customers of Dame, a brand that offers adult toys and personal care products, will automatically add $5 to customers' online bills, per CBS. "Our whole industry is in China, so we've already seen the impact," Dame CEO Fine told CBS MoneyWatch.
U.S. chipmaker Micron and Honeywell Building Automation also announced tariff surcharges, CBS reported. Other companies have used the tariffs as an opportunity to entice shoppers to buy now before more tariffs are imposed.
The steel tariffs that went into effect in early April are expected to raise prices of new cars by thousands of dollars. But they appear to be adding value to used cars.
Bloomberg Kiel Porter reported he paid just over $30,000 in November for a used 2022 Honda CR-V hybrid with 41,000 miles on the odometer. Porter reports last week he received "a panicked call from a manager at the dealership that sold me my CR-V."
“I need to buy your car back, sir, and I’m willing to pay substantially more than you paid for it,” Porter quotes the manager as saying.
The manager said he needed to replenish his inventory of used vehicles that was dwindling because of the tariffs, according to Porter.
"It was just the kind of car he could sell straight away," Porter reported.
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