
Tariffs and Holiday Shopping
Clip: Season 4 Episode 111 | 3m 13sVideo has Closed Captions
How tariffs could impact the 2025 holiday shopping season.
Will tariffs affect how consumers will shop this holiday season? We talked to a University of Kentucky professor for some insights.
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Kentucky Edition is a local public television program presented by KET

Tariffs and Holiday Shopping
Clip: Season 4 Episode 111 | 3m 13sVideo has Closed Captions
Will tariffs affect how consumers will shop this holiday season? We talked to a University of Kentucky professor for some insights.
Problems playing video? | Closed Captioning Feedback
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Learn Moreabout PBS online sponsorshipWell this holiday season.
How will tariffs and artificial intelligence affect how you shop?
We talked to a University of Kentucky professor for some insights.
Yes, we're seeing tariffs.
But it does mean that 100% of the tariffs is going into the price.
Right.
Because price is a very, very complex decision that is actually mainly driven by competition.
But we are seeing that because of the tariffs, some stores stop carrying products since the cost is too high.
So we're seeing for example, there is a high percentage tariff on pharmaceutical drugs and we're seeing tariffs on, furniture or things like kitchen cabinets, bathroom vanities.
So if people are more waiting to buy those kind of like larger ticket items, maybe to remodel their homes, there may be increased price or maybe they have less, varieties to choose from.
The biggest discounts we see are, products that have fierce competition or products have really high markups, because if it's really high markups, it's easier for them to say 60% off without really affecting their costs.
So those I would imagine, some sort of mass market apparel basics that is not impacted by tariffs because some stores actually, increase their inventory a lot.
They bulked up their inventory prior to tariffs so they can stay competitive.
They can still keep the low price.
And then I would imagine last generation electronics, your iPhone 16 or some sort of, used devices, those are, could be items that people could save money on because it's not impacted by tariffs.
Sometimes stores will markup their price and then give you a discount.
So the price that you end up paying actually may not be as low as you think.
So I would if I can remember right, I can compare perhaps online.
A lot of people start have carrying their smart devices with them, to see if that price you're seeing is actually a discounted price if it's actually lower.
Smaller businesses are, they're having a harder time to adjust to all this price competition.
Right?
They're smaller.
They don't have as much as pricing power.
They may not be able to, you know, buy a lot of products in their inventory to get the discount.
So they may have a harder winter this year.
I would try a little bit more to go to those smaller businesses just to keep them in the competition.
This year, shoppers can also expect to see a lot more eye involvement when shopping online.
Some, like Amazon, are using artificial intelligence to track prices, allowing consumers to automatically buy a product if the price drops below a certain point.
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