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Numerous businesses across the United States have voiced their concerns regarding the comprehensive tariffs recently implemented by President Donald Trump. Experts warn that these tariffs could lead to elevated costs for companies, which may ultimately be transferred to consumers through increased prices.
The imposition of tariffs, coupled with the fluctuating communication surrounding their implementation, has triggered a wave of “panic-buying” across various product segments anticipated to face price hikes in the near future. This trend was highlighted in a report by Reuters, which referenced data from the U.S. Commerce Department.
Thibaud Hug de Larauze, CEO of Back Market—a marketplace for pre-owned and refurbished tech gadgets—reported experiencing a spike in sales directly correlated to the announcements regarding tariffs. In fact, sales for Back Market tripled in just one week following these proclamations.
“Some individuals likely expedited their purchases of smartphones or computers due to concerns that costs would rise significantly in the near future,” Hug de Larauze noted, reflecting on the shift in consumer behavior.
A substantial portion of smartphones and computers are produced in China, where a staggering 145% total tariff has been imposed on goods entering the United States. Although Trump temporarily exempted these electronics on April 11, new proposals for specific tariffs targeting the tech sector could come into effect as early as May.
From Hug de Larauze’s perspective, the recent surge in sales might indicate a broader trend where American consumers increasingly consider opting for used or refurbished electronics. “This presents a significant opportunity to alter consumer habits in America, as the financial incentive to avoid tariffs has never been stronger,” he argued.
Analysts appear to align with Hug de Larauze’s insights. Dan Ives, the global head of technology research at Wedbush Securities, anticipates that sustained tariffs may generate a “significant uptick” in short-term sales of second-hand devices, particularly smartphones.
In light of the proposed tariffs, companies like Apple might find themselves compelled to raise prices, potentially by hundreds of dollars per device, according to various market analysts. This shift in pricing dynamics would depend heavily on the final structure of the tariffs aimed at electronics, as noted in a report from Reuters.
Currently, Back Market reports that while there is a demand for new devices, only about one-third of their stock is sold within the U.S. Hug de Larauze predicts that this distribution could shift significantly once tariffs are implemented, potentially resulting in two-thirds of sales catering to U.S. customers seeking cost-effective alternatives.
The exact timeline for the tariffs remains uncertain. Trump’s anticipated electronics tariffs could come into play at any moment, with potential durations ranging from a matter of days to several months or possibly not being enacted at all.
Looking ahead, Ives envisions that while many consumers might temporarily pivot toward used or refurbished devices to navigate rising costs, they will likely revert to purchasing new technology once their financial situations improve. “We estimate that 80% to 90% of consumers prefer buying new smartphones, and changing such ingrained buying habits is challenging,” he added.
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