The Consequences

Written by SK Ashby

(Cartoonist - Adam Zyglis)

In other news, Trump says Apple will not be granted an exemption from tariffs on certain parts used in Mac computers. Make the parts in the USA, Trump says, even though no one here makes that shit.

Meanwhile, the European Union's investment bank is going to stop funding projects that rely on fossil fuels according to a draft policy the bank just released.

Finally, here's a novel way to navigate Trump's trade war: rebrand your own products with the new, higher prices resulting from Trump's tariffs.

With consumers and retailers often unwilling to accept higher prices for the same products, oft-heard tactics range from accepting lower profit-margins, to cost-cutting that may include lowering wages or laying off workers, to shifting production from China to other countries. [...]

“Instead of cutting costs we’re going to add some costs, but in the long run it will pay off,” [New Air VP of Marketing Andrew Stephenson] said by telephone after a trip to China to meet suppliers.

Jim Estill, CEO of Danby Appliances, a Canadian company that sources similar products from China and sells many in the United States, calls the strategy “upfeaturing”.

If you’re already buying a minifridge for $129 — and now it’s $149. You’re up in arms. But the psychology is completely different if you say: ‘here’s the new XYZ, it’s $149’ — and the customer checks the market and sees everyone is charging $149 for the same thing, it’s acceptable.”

I audibly cackled when I read this.

Have a good weekend, folks.