Trump’s tariffs and caskets

 

 

The tariffs that President Trump put into effect this week seems to be the subject in every room that I step into.  We even talked about it at after church coffee on Sunday.  So, why not try to give some type of opinion on how those tariffs will affect the major manufactured product that funeral homes sell.

 

First of all, I don’t pretend to be an expert on the American casket industry or where each company may manufacture the caskets or components of caskets.  I also am not privy to the exact regulations of the imposed tariffs and if there is “carve outs” or additional fees on these products.

 

So, knowing that I don’t have all of the relavant information what I am going to try to do is simply give my opinions on what “could” happen.

 

Let’s start with a little history (and you can read more about “casket history” in the USA by clicking on this article from the Casket & Funeral Supply Association of America).

 

When I started in the funeral home business in 1980 I had several different companies that I could buy caskets from.  There were regional casket manufacturers and at least three large national brands — Batesville, Aurora, and Amedco.  Over the years lots of those regional manufacturers have disappeared and there are less casket companies to choose from.

 

To that point, a 2019 article from The Hustle states that 82% of all caskets purchased in America come from only two companies — Batesville and Matthews Aurora.

 

And, since my funeral career beginning in 1980 there has also been a transformation of where caskets are manufactured.  I’m pretty sure that almost all U.S. used caskets in 1980 were manufactured in the USA give or take a small percentage that were imported by Canadian companies.  But, like other manufacturing companies domiciled in America, it is believed that some casket manufacturers have moved at least some of their manufacturing plants to locales of lower cost production.  Those lower cost facilities have, in President Trump’s view, allowed for lower priced consumer purchases but have also taken away American manufacture worker jobs.  Manufacturers that may be located in Mexico, Canada, or China may now face the tariffs that are being imposed.

 

So, What will happen —  If there is a tariff placed on caskets from those aforementioned countries, the cost of landing that completed casket in America will go up.  The company still has its production costs and now there will be a fee, or tariff, for access to the American consumer.  There is no getting around that it will be more costly for that manufacturer to land their product in American showrooms.

 

The casket company will have a choice to make. . . . Will they absorb that “tariff” cost in which case their profits will be lessened or will they pass on that cost and risk losing the customer to a lower priced, and in President Trump’s view, made in America manufacturer?

 

An interesting story on what happened last timeThis article was published on February 4, 2025, when the first announcements of possible tariffs surfaced.  It’s titled “What happened the last time Trump imposed tariffs”.

 

The article tells of President Trumps 2018 tariffs against low priced washers and dryers manufactured in South Korea.  Here’s what the article says of the prices of those products by the time the tariffs expired in 2023:

 

“After the tariffs were imposed, washing machine prices fluctuated from month to month but took an overall upward trend. By February 2023, when the protections expired, prices for laundry equipment (washers and dryers) were up 34% compared to the same time in 2018, according to data from the Bureau of Labor Statistics. Over the same period, prices for all consumer products were up 21%, according to the Consumer Price Index.”

 

The South Korean companies, according to the article, built manufacturing facilities in the United States.  But, according to at least one study, here was an overall result:

 

“And just as tariff proponents had wanted, some companies moved their washer production to the U.S. to get around the tariff. Notably, LG and Samsung both set up factories in America. The University of Chicago economists estimated the tariff policy had created roughly 2,000 jobs in the U.S.

But those jobs came at a cost.

For every new job created, consumers paid $820,000 in inflated appliance costs, the Chicago researchers estimated.”

 

On the other hand. . . those factories and jobs are here to stay.

 

Tom Anderson
Funeral Director Daily

Funeral Director Daily take:  Don’t shoot the messenger.  The above article is how I see the tariffs on casket companies and what might be a possible outcome as measured by the experience in the white goods industry.

 

I do have one big fear for our industry/profession.  That fear is that anything that raises the price of traditional casketed burials will, in my opinion, increase the propensity to a choice of cremation for the consumer.  Wholesale casket prices going up 10 or 20% because of tariffs may turn that fear into reality.  Again, in my opinion, there is enough challenges in keeping the “traditional burial” consumer already without an increase in casket prices.

 

Funeral “type choice” is not a decision made in a vacuum by the consumer.  The cost of the “choice”, in my opinion is factored into the choice by the consumer.  Again, in my opinion, anything that causes caskets to go up in price will not be good for traditional funeral homes.

 

A quicker descent of “casket using” consumers is something that many funeral homes could not absorb without financial consequences.

 

What is President Trump’s strategy?  — Personally I try to get inside President Trump’s head and see what he is thinking.  I think he sees the trade deficit America has with many countries and is looking for a better deal than we have presently. . . . not necessarily the proposals he has thrown out there.

 

My take is that he is negotiating and hoping that he can get tariffs lowered on American products sold in some overseas markets while at the same time raising “some” tariffs on products coming into the United States from selected countries.  Again, I’m not privy to any of the discussions, but it seems to me that everything is up for negotiations at this time.

 

But, I also think he is serious about bringing certain manufacturing capabilites back inside the United States — especially for national defense purposes.  I truly think there are industries that he wants to bring back to the United States — and, I’m also guessing caskets have not crossed his mind.

 

Related Article. . .There is a long history.  “The Tariff act of 1789”  (Wikipedia)was the first major act of American legislation.  It raised tax revenue to pay for the debt incurred during the Revolutionary War and it helped develop and protect fledgling American manufacturers.

 

Related ArticleThe 7 best casket companies and casket manufacturers.  2023 date – from Gather Blog

Related ArticleCan Trump win the tariff wars?  Unherd

 

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