Consumers may encounter higher prices for clothes and home goods this holiday shopping season, as the trade dispute with China is expected to increase costs and slow economic growth in the Midwest.
Retaliatory tariffs from the trade spat with China have hit a range of consumer goods. Different companies are handling those added costs in different ways. Creighton University economics professor Ernie Goss says smaller retailers tend to have narrower margins than corporate chains, and they’re not as equipped to take these hits.
“Some of the online retailers are willing to take a real loss right now, in other words, pricing goods at below cost and that really hurts some of the bricks and mortar stores,” he said. “And that’s what we’re seeing across the region.”
According to Goss’ recent survey of bankers across Midwestern states, the region’s economic growth is slated to be down this quarter compared to last year.