Are Shreveport Businesses Absorbing or Passing on Tariff Costs?

Did you know that one of the most googled words since President Trump took office has been tariffs? Do you remember when President Trump claimed that tariff is the "most beautiful" word? According to MSNBC.com, "Trump has favored tariffs as a solution to economic problems for years"

If you're like me and have never really paid attention to tariffs or can't explain what they are, simply put, tariffs are a tax that the government puts on other countries' imported goods or services. The thought behind it is that our domestic production will increase here in America since he price of imported goods has increased. So to make it all very simple for those of us ignoring the news, a tariff taxes imports, making them more expensive which pushes us to purchase domestic goods. Makes sense, right?

Have You Spotted Tariff Surcharges in Shreveport Yet?

I was checking out of my latest online shopping experience, and after I paid for my order I noticed a separate fee. What is a tariff surcharge? Since when do we get a tariff surcharge added onto our online shopping? It was at that moment I realized that even though I may be purchasing from an American company, the supplies needed to make what I ordered are coming from overseas.

According to Yahoo Finance, almost half of the businesses in America plan to pass on tariff surcharges to their customers. "44% of businesses plan to pass increased costs to customers as a result of recent tariff changes." There is good news in all of this, though: "87% are still optimistic that they'll maintain profitability amid global economic conditions."

Have you noticed tariff surcharges in anything you have purchased in Shreveport lately? Will these tariff surcharges put you on a spending hold?