The Trump tariffs and Death Care
The International Trade Association defines tariffs as such: “A tariff or duty (the words are used interchangeably) is a tax levied by governments on the value including freight and insurance of imported products. Different tariffs applied on different products by different countries.”
I’m writing this on Saturday morning and the “Trump tariffs” are supposed to be imposed on certain imports from Mexico, Canada, and China today. How might that affect Death Care?
It’s easy to see why countries want to sell their products in the United States. Democracy and free enterprise have made the United States arguably the nation with over 300 million consumers who have the most spendable income in the world. The “consumers with spendable income” is the prize.
It’s a little like the Willie Sutton story. Sutton, when asked why he robbed banks said, “That’s where the money is”. Manufacturers of products from all over the world would say the same thing about selling their wares in America, “That’s where the consumers are”. It’s easy to see why others want to have their products available for sale in America.
So let’s look at a basic reality of purchasing by consumers. Let’s assume a “Widget” is built in some Far Eastern country for $20 and it costs $5 dollars to bring that product to the United States . . . that’s a total cost of landed product in the US of $25. Let’s also assume that that “Widget” can be manufactured in America for $30 — the additional cost being the higher wages and First World level of benefits to employees. . . . pay and benefits that give America those “consumers with spendable income”.
In our example the foreign (low cost producing) nation lands their “Widget” in the US for $25 and the US manufacturing firm, paying better wages and benefits completes their “Widget” for $30. Let’s also assume that each company needs a $20 margin on their product to operate their business. That gives the foreign manufacturer a $45 price tag and the American manufacturer a $50 price tag.

Tom Anderson
Funeral Director Daily
President Trump has said he wants a 25% tariff on products coming from Mexico and Canada and a 10% additional tariff on products currently coming from China. That tariff (or tax) will be paid to the United States government adding to our revenues. And, on $25 that 25% tariff would equate to $6.25 making the final, taxed, cost of landing “that fictional Widget” in the United States $31.25. Again, assuming that $20 margin, the final retail cost would be $51.25. . . .more than the comparable American product at $50.
The final theory being that that retail cost would not only allow for tax revenue to flow to the U.S., but it should make American products be the product of choice more often because of the closer price proximity to the foreign product. And, more American products being bought will give more American workers jobs and be good for America.
The downside, however, is that American consumers no longer have access to that “low-cost” product from a foreign country because its price has went up due to the tariff. And, that is generally considered a negative for the American consumer.
Another downside, of course, is that American manufacturers want to sell their products in other countries around the world. And, those countries have the ability to put tariffs on American-made imported products.
Of course, President Trump has a firm belief that those tariffs on America products is already being done and American manufacturers are being taken advantage of and being charged these tariffs. Part of his logic on tariffs is “What is good for the goose is good for the gander”. However, many see President Trump’s viewpoint on that particular fairness issue as not totally correct.
What about Death Care: A large portion of Death Care revenue is “Services” and not merchandise. In a world of tariffs that’s a good thing for Death Care. However in checking, and I will not call out individual companies, but it appears that some major distributors of caskets in America either manufacture or purchase for distribution caskets built in whole or in part in Mexico, Canada, and/or China.
So, one would expect, unless there is a carve-out for Death Care products, those caskets made in Mexico and Canada to have this tariff of 25% put on them and for caskets coming from China, one would expect President Trump’s tariffs to add 10% to those units.
In my way of thinking, this is just another reason why true service charges should be increased, set, and priced and the price of products that are sold by Death Care providers,such as caskets, should be at or near cost with little mark-ups. It was back in the late 1980’s or early 1990’s that my funeral home greatly raised our service charges and set our casket prices at the actual wholesale cost. It was a decision that greatly increased our profitability.
Related — Tariffs helped build the United States of America — Most people don’t know but the Tariff Act of 1789 was the first major piece of legislation passed by Congress after the ratification of the United States Constitution.
The Tariff Act of 1789 — Wikipedia
From this passage of the Wikipedia insert you realize that some of the same arguments are made by some of the same consituencies in the arguments as today. i.e. tax revenue, American manufacturing and industry, consumer costs, and fairness. . .
“The debates over the purpose of the tariff exposed the sectional interests at stake: Northern manufacturers favored high duties to protect industry; Southern planters desired a low tariff that would foster cheap consumer imports. Ultimately, (Congressman and future President James) Madison navigated the tariff to passage, but he was unable to include a provision in the final bill that would have discriminated against British imports. After passing both houses of Congress, President Washington signed the act in law on July 6, 1789 when they used it to pay off the US war debt.”
More news from the world of Death Care:
- Hughes appointed Southern District Governor of the Mississippi Funeral Directors Association. The Prentiss Headlight (MS)
- 200 vases stolen from Lafayette cemetery. KRON TV – SAn Francisco (CA)
- VA expands access to Veterans Legacy Memorial for living veterans. The American Legion
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