The Tough Realities of Tariffs
Tariff is simply a fancy word for a tax on imports or exports and if you are a creative artist in any capacity, your business will be affected by the 10% tariff the Trump administration imposed on billions of dollars worth of Chinese imports this past September (the rate was supposed to rise to 25% on January 1st, but the two countries have agreed to hold off on the increase until March 2019).
Tariffs are affecting the import costs of pretty much every product that goes into making a wedding happen. Even if the end product is assembled in the United States, many of the source materials come from China.
For example, chiavari chairs now cost 10% more for furniture rental companies to import, and may cost 25% more come March. These costs ultimately get passed to the bride and groom, which means that either their design budget won’t stretch as far, or they’ll choose to splurge in this area and cut back on other vendor categories (photography, invitations, music, etc).
Here are just a few of the wedding-related materials and products that will be impacted by these new tariffs: letterpress machines, engraving plates, stamping foils, stationery (glassine, embossed paper, photo paper, etc), inks, dyes, paints, pigments, cameras and camera parts, film, power generators used for tented weddings and outdoor events, compressors, hydraulic lifts, and other tools used in event production and installation, hair products, gifting products and materials, vinyl, wall and ceiling coverings, dance floor materials, wedding apparel and fabrics, upholstery, leather, and floral containers.
You can download the full list of import products impacted by these tariffs here.
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Across the pond from the US, Brexit is likely to affect floral imports, driving costs up, which in turn will force couples who value flowers the most to cut back in other supplier and vendor categories. Again, this means that the price of wedding flowers could very well affect you as a caterer, photographer, or invitation designer.
Some feel that Brexit’s impact has already begun, even though it has not yet officially been implemented and still faces a fight. Many British wedding suppliers have seen their costs go up, in turn pricing them out of the budgets of their target brides and grooms.
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Even if you hate politics or don’t consider yourself a political person, the policies and laws that get implemented affect your business in a very real way, no matter what side of the aisle you fall on. If you never pay attention to the news, consider checking in at least once a week, so you can keep your thumb on what may impact you, even indirectly, in the future. Pay attention to your supply chain and the supply chain of the products you use and depend on. This will help you better plan and prevent you from getting caught off guard.