With the advent of the internet and the increasing influence of e-commerce, it’s no news that the world is fast going online. There is almost no product nor service you can’t find online including your best quality mattress.
The recent trade war between the President of the United States of America, President Donald Trump and the Chinese government will inevitably take its toll on the market including online trades.
America listed over 6000 products from China and a record showed that the top 20 of these products amount to more than 75 billion dollars on importation in the U.S the previous year.
The products affected include; seafood, chemicals, switches and routers, cars and car parts, furniture, handbags, semiconductors rear-earth metals, mobile phones, soybeans, device parts, diary, solar panels, meats, home improvement, sneakers, mattresses, and more.
How Would President Trump Affect The Online Mattress Industry? The end-users or customers will likely experience a hike in the price of these imported good including the online mattresses industry because most manufacturers depend on imported materials from China partially or fully.
President Trump’s Tariff Increase Move: Effect On Online Mattress Industry
In the recent developments in the trade, 10% to 25% tariffs were placed on products imported from China, to salvage the economy of the United State of America and create more domestic jobs.
There is an expected hike in the price of mattresses which had already started a couple of months ago. Mattress shoppers will have no choice but to make do with what is available. The online mattress industry would not be left out.
Buyers would have to pay extra for their dream bed in a box mattress. The cost of bed frames and other bedding products would also not be spared especially when it has to do with mattress companies that source for materials from China.
The locally-made mattresses manufacturers who will not be paying the tariffs might also seize this opportunity to increase their price as there is also an increase in price with sellers who import bedding materials.
Some of the big mattress manufacturers in the U.S claim their products are made domestically in the United States of America including some online sellers like Casper.
Panjiva recorded that about 1 billion dollars’ worth of mattresses were imported into the US within 12 months which ended in May and about $850 million worth is from China.
The United States policy plans on cutting this amount down and boosting its own local manufacturing companies.
With this new government policy from President Trump’s administration, the cost of importing these bedding materials will be high and thereby affecting the cost of production.
David French, the senior Vice President at the National Retail Federation in charge of government relations said, “The supply chain will try to absorb as much of the blow as they can, then they will move those costs forward to consumers”.
The President of the United States believes that the heat of the tariff increase will be felt by the Chinese but experts say that the heat would also be felt by the American customers too. The suppliers have to bear the cost.
They either look for an alternative source for raw materials in another country or they increase the price of the product because they have to stay in business. The basic reality is that the customers will have to bear the bulk of the heat of this fight.
Although the mattress manufacturers who source their materials from within the United States might not experience this.
Mattress shoppers might just be left with the option of sticking with what is available in the market. But when you consider the fact that the online mattress industry goes beyond the shores and boundaries of a nation, this might pose a challenge.
What Is The Online Mattress Industry Doing To Stay In Business?
Some brands which sell bed frames and low-cost mattresses online like, Olee Sleep, Dynasty Mattress, LUCID, Linenspa, Signature Sleep, and more would have to look for alternatives or face real challenges.
If they still decide to stick with the payment of the tariffs, automatically the prices of their products would not remain the same again.
Some companies would have no other option than to move their factories to other countries.
Some reports have recorded that some companies are looking at the possibilities of relocating their factories to some countries in South Asia like Indonesia, Vietnam, Thailand, and other countries that are not involved in the trade war and also provide cheap labor.
If this occurs, it is then certain that some people would be losing their jobs. The cost of moving factories to another country and gaining mastery of the location is another thing to consider.
There is tension in the air, retailers are considering stocking up. Customers are under pressure. They might have to also consider getting certain products before the hick in price kicks in.
Will the trade war place considerable limitations on the online mattress industry? Is the trade war really what should be done? What are some of the possible effects that it would have on the consumer and US-based industries? Who eventually pays the ultimate price? These questions and more are major questions to being asked.
How Will The USA – China Trade War Affect Other Nations?
A retaliatory action might be taken by other countries just like the retaliatory tariffs of 10% duties placed on about 79 of the products (which also includes mattresses) from America by the Canadian government as a result of the increase in tariffs placed on steel and aluminum by the American government.
These “retaliatory tariffs” would possibly affect US exports of American-made mattresses which are gaining increasing popularity to other countries thereby creating an online trade barrier.
The increase in the importation tariffs would greatly reduce importation thereby decreasing the brand competitiveness.
With the involvement of multiple brands, competition abounds, therefore, every brand would work towards being at the top of their market with quality and good rate.
Therefore, lack of competitiveness can also lead to poor quality. A wide range of products to select from is one major feature of the online mattress outlets that will be defeated.