The Financial Post reports in its Tuesday edition that the full impact of U.S. President Donald Trump's trade war, including tariffs, reciprocal tariffs and escalating tariffs on Chinese goods, has yet to be seen. The Post's Denise Paglinawan writes that while there is currently a 90-day pause on "reciprocal" tariffs on about 60 countries and territories, what might follow the reprieve, along with all the economic uncertainty in general, is affecting Canadian clothing retailers that make their products overseas. Many apparel companies had already shifted production from China to other Southeast Asian countries such as Vietnam and Cambodia due to tariffs imposed during Mr. Trump's first term. While many people assume that the tariffs will lead to higher prices on goods, this may not be the case for some retail companies -- particularly those that do not enjoy as much brand loyalty from consumers, said BMO analyst Simeon Siegel. There are ways retailers can absorb the cost of tariffs on production without necessarily raising the price. "Tariffs do not give companies permission to raise price. Consumers give permission to raise price," he said, adding that if shoppers push back, discounts could return just as quickly.
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