Trump's trade war will change your shopping experience

Trump's trade war will change your shopping experience

In the coming weeks, the effects of the trade war under President Donald Trump will be noticeable in every purchase. The variety of products in shops and online is significantly restricted because tons of variations, colors, sizes and flavors are replaced by a reduced selection. This represents a drastic change for consumers who have been used to an extensive offer in the past.

The effects of the trade war on the variety of products

As studies show, the number of imported goods on the shelves has tripled in the past five decades, which corresponds to an increase in GDP by 2.6%. Supermarkets currently run around 30,000 different items, Walmart sells up to 120,000 products in its supermarkets, and Amazon's online catalog comprises millions of articles. However, with the universal tariffs introduced by Trump to almost all products that are introduced to the United States, consumers have to expect less selection, especially for shoes, bags, toys and many other products.

rising prices and reduced selection

"This will be one of the greatest consequences of the tariffs. The variety that we are used to will be severely restricted," explains Jason Miller, professor of supply chain management at the Michigan State University. Many companies already face the challenge of which products they can continue to offer despite the high tariffs. Some products are removed from the range because they are either too expensive in production or can jump off consumers during price increases.

Companies that previously obtained products from China now only buy their best -selling articles from manufacturers from other countries where they can negotiate cheaper prices. In addition, new product introductions and innovations that have been developed over the years are exposed.

effects on small companies

tariffs not only affected large companies, but also small companies that rely on the offer of products. Sarah Wells, founder of a brand for still trips and accessories, find that her bestseller, a backpack for milk pumps, will only be available in black or another color as soon as the current inventory is used up. "We cannot offer four other colors right now," says Wells, who is forced to set orders from China due to the 145% tariffs.

large brands and their reduced range

Large brands also draw their consequences. Hasbro, owner of Nerf, Play-Doh and other toys, plans to delete some articles that are not profitable among the new tariffs. About 80% of the toys sold in the USA are produced in China. The brands Newell and Acco Brands have also announced that the range come from China and the tariffs have a significant influence on the calculation.

less innovation and creativity

The consequences of these tariffs will not only restrict the variety of products, but also inhibit innovations and cause winners as well as losers in the retail industry. Companies that are able to successfully position themselves in this new era of protectionism will offer less manageable product catalogs. "The wider the range of a company, the more endangered it is to cancel product lines," explains Shawn Nelson, CEO of the furniture retailer Lovesac. Consumers may have to expect fewer new products or have no access to innovative offers.

In summary, it can be said that the trade tariffs bring about a fundamental change in the availability of goods, which presents both consumers and retailers with new challenges. The future of trade could mean less selection and innovative products for consumers.