Prices going up thanks to tariffs on Chinese goods
Furniture, toys and appliances; it's just a short list of what Alaskans can expect to pay more for in the near future. The reason? Tariffs imposed on Chinese goods by President Trump.
There have been a number of tariffs placed on Chinese goods including one that went into effect earlier this year. That tariff, on steel made in China, also caused American steel prices to rise. The latest tariff is a ten percent tax that effects over 5000 products. It went into effect at the end of September.
Local retailers said the tariffs are impacting them and will soon impact their customers. Kyle Mirka, at Allen and Petersen plans to raise appliance prices at his store on January first. Mirka said some of the items he sells come directly from China and are subject to new tariffs, but many more contain steel that is also being taxed. Mirka said individual manufacturers may dictate how much prices may rise but he gave the example of a refrigerator that averages $2000, saying the cost will probably go up another hundred dollars.
Another industry that is feeling the effects of tariffs is furniture, and Ron Bailey owns some of the biggest stores in Alaska. Bailey said he gets in 10 to 20 containers of furniture a week, much of which comes from China. As of September 24, those containers cost him 10 percent more.
"So we get in a container that's worth $30 thousand and it's a $3 thousand tax," said Bailey. "A $40 thousand dollar trailer is another $4 thousand on top of that."
Bailey said he doesn't want to pass those increases on to his customers but he also doesn't have a choice. He expects prices to go up slightly by the first of November.
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