Companies in the United States are adding a trump rate to customer invoices to indicate that the price increase comes from the new tariffs imposed by the government. The strategy, with political appeal, can help niche brands gain visibility at this time of high commercial voltage.
Although risky for potentially driving part of consumers, the measure is defended by entrepreneurs as a form of transparency.
“We are giving Trump full credit for this fare that affects all American consumers,” said Ryan Babenzien, founder of Jolie Skin Co., which manufactures filter showers. The company will start charging the Trump “Liberation Rate” next week, although it is still calculating the amount that will be added to the price of a $ 150 product.
The Jolie team develops its own system to insert the charge on the site, which operates on the Shopify platform. Online forums already discuss how shopkeepers can implement similar rates on their sites, and suggest that Shopify add this functionality to the basic package. Currently, the platform does not offer this option, but allows customizations via programmers or external applications.
Adopting a visible additional charge is a way of showing that not all costs are under business control, especially in the face of significant increases in items such as transportation or energy. Restaurants, for example, added extra rates to the menu when egg prices rose earlier this year.
The trade war started by Donald Trump continues to cause uncertainties, even after the postponement of tariffs to most countries for 90 days. China follows as the main target, facing tariffs up to 145%.
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While large retailers still negotiate how to absorb new costs in the supply chain, small businesses often have no other way to pass on to the increase to consumers. Brands with a more engaged audience can opt for a direct speech, according to Sky Canaves, an analyst at Emarketer Inc. “Given uncertainty about tariffs and doubts about the impact on prices, consumers can value transparency and even normal these charges as more brands adopt them,” he said.
The additional fee tends to work better for companies with few products and whose customers buy single items, according to Jarrad Berman, partner of TZP Group manager. He believes that values below $ 10 are more acceptable, but multiple charges on large shopping carts can ward off consumers. “Everyone is discussing fare rates,” said Berman, who has brands like Saxx and Zimba in the portfolio. “But there is no unique formula.”
Dame’s intimate products manufacturer, for example, added a $ 5 Trump Tariff Surcharge some of its sex toys, which costs $ 45 to $ 140. The company imports China’s items and failed to reduce enough production costs to compensate for tariffs, explained CEO and co -founder Alexandra Fine. Unable to apply the charge as a percentage on the site – also hosted at Shopify – they opted for a fixed amount. Fine also said that he is negotiating with networks like Walmart and Target to pass on the costs.
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For her, the decision goes beyond the financial aspect: “It was another expression of frustration and a way to make it recorded in the note.”
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