By Justin Moore
- Tariffs on $200B worth of goods that could affect black consumers
- African American consumers spend $152M on women’s fragrances, which represents about a quarter of the overall market
As trade talks with China have stalled, President Trump recently announced the country would increase tariffs on some $200 billion worth of goods from 10% to 25%. Long story short, tariffs are an import tax on imported goods that while not directly paid by consumers, impact the price they pay. Let’s breakdown some of the items that will impact African American shoppers as the Tariff war continues to unfold.
Why This Matters: While the list of Chinese goods facing increased tariffs is almost 200 pages long ranging from chemicals to live eels, the everyday consumer is likely to feel the pinch across the board. Items like perfumes will see a price hike, and considering African American consumers spend $152 million on women’s fragrances, which represents about a quarter of the overall market they are likely to fill the tariff price hike. Even your cooking game will be impacted, as spices are included in this tariff battle, and Nielsen reported that black people spend more than $430 million on seasoning.
The NY Fed predicts if the higher tariffs remain in place that in 2020 the average cost per household of be $831
In retaliation to President Trump’s tariff hike, China has announced it will increase tariffs on $60 billion of goods. Trade wars can affect everything from consumer pricing to the stock market like the S&P 500, which fell 2.4% upon news of China’s retaliation. Also, the Dow lost more than 400 points at its lows last week, as both countries appeared to dig in on their positions. Companies in trade-sensitive fields like agriculture and semiconductor manufacturing could be hit particularly hard. In certain consumer categories such as dry grains and vegetables, Black consumers represent almost 50% of overall spending.
What’s Next: If the trade war persists, market strategists see an impact on second half corporate profits and a bigger hit on the global economy. The NY Fed predicts if the higher tariffs remain in place that in 2020 the average cost per household could be $831.
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