“For a full offset of tariff impact, we would need only a low single digit price increase globally.”<\/p><\/blockquote>\n
Mr Krolo added that, “pricing is not the only lever we have though \u2026 additional levers include efficiencies in production, vendor negotiations, the optimisation of product mix and the allocation of products between the different regions.”<\/p>\n
<\/p>\n
Pandora estimates that US tariffs could add tens of millions dollars to its cost. (Reuters: Hollie Adams)<\/p>\n
One of the world’s biggest jewellery brands, Pandora, is also eyeing price rises. It primarily produces its products in Thailand.<\/p>\n
The Danish jeweller outlined the scenarios of tens of millions of dollars in cost increases due to US tariffs in its first-quarter interim financial report, saying: “the extent and timing of further price increases to be determined based on the concrete circumstances.”<\/p>\n
Fashion brands want to bring manufacturing home<\/a><\/p>\n Experts say the local industry has been in decline for decades, with just 3 per cent of the clothing produced by local brands and designers is made in Australia.<\/p>\n Meanwhile, analysts are closely monitoring the outlook for Apple and Samsung, given Mr Trump has threatened a 25 per cent tariff on smartphones not made in America.<\/p>\n “If iPhones got built in the US, you’d be looking at iPhones in Australia that go up three times from where they are today,” Wedbush Securities analyst Dan Ives told The Business from New York.<\/p>\n “It’s not just about the US consumer, it’s about the foundation of all the costs that are increasing around the world.”\u00a0<\/p>\n Stephen Halmarick is the principal at Economics Unchained and the former chief economist at the Commonwealth Bank. (ABC News: Daniel Irvine)<\/p>\n Economists say the rationale for multinational firms to spread the cost beyond the US is to avoid dampening demand from American consumers, which is a large and crucial market, by having them foot the bill entirely.<\/p>\n “If they impose all of the price increase on the US consumer, that could do a number of things, which is reduce demand significantly by the US consumer,” former Commonwealth Bank chief economist Stephen Halmarick told The Business.<\/p>\n “It could also bring them some unwanted attention from the [US] president, I would say,”<\/p><\/blockquote>\n the now-principal at Economics Unchained noted.<\/p>\n The impact could be felt around the world in a matter of weeks and months.<\/p>\n “As we get into June, July, August, you’re going to see price increases around the world,” Mr Ives said.<\/p>\n “You could see prices increase anywhere from 3 to 5 per cent, and then some products potentially double digits.”<\/p><\/blockquote>\n Growth worries overshadowing inflation risk<\/p>\n<\/p>\n