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How Tariff Increases Could Impact Our Industry: Manufacturer Insights
As part of our commitment to transparency and collaboration, URA surveyed manufacturers to better understand how potential tariff increases could affect pricing and the supply chain. The goal? To provide independent retailers with a clearer picture of what's ahead and how we might work together to minimize disruption.
Here’s what we learned:
🔹 Most manufacturers expect prices to rise.
A strong majority (83%) of respondents anticipate price increases on their products due to the upcoming tariffs.
🔹 Some are exploring ways to soften the impact.
Of those expecting increases:
- 40% are considering a shared-cost approach—spreading the tariff burden across the supply chain, from fabric mills to retailers.
- 40% are looking at gradually rolling out increases over time.
- 20% said they would not pursue any cost-sharing strategy.
🔹 Mitigating sticker shock is on their minds.
When asked whether a shared-cost or gradual increase strategy could help support steady sales and avoid customer backlash:
- 40% said yes
- 40% were unsure
- 20% said no
One manufacturer noted, "I do not think the end user will feel the price increase outside of contractual groups."
🔹 If tariffs are rolled back, prices will come down.
Every respondent committed to reverting prices back to pre-tariff levels if the new tariffs are removed.
🔹 Supply challenges could arise.
Half of the manufacturers anticipate supply problems, while 33% are unsure, and 17% do not expect any disruption.
🔹 Additional Suggestions from Manufacturers:
One recommendation stood out: "Educate retailers on what a tariff is and how this impacts the manufacturers."
🔹 What’s Next?
URA will continue to monitor the developments for retailers. We appreciate the manufacturers who shared their perspectives and remain committed to working together as a unified industry.
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