No Price Hike Here: 6 Services Unaffected by New Tariffs

Rates of duty have been getting a lot of attention lately. There are some good things about tariffs, which are taxes on goods from other countries. They can make everyday items much more expensive, though, making them harder for most people to buy.

Put a 10% tax on something that costs $10. There would be a $1 tax on that charge, making the total price $11. Reuters reports that President Trump recently put a 145% tariff on many Chinese goods. This would make the same thing cost $24.50.

You don’t have to worry about taxes after all. They believe that even if tariffs go up, the prices of some goods and services will not change.

But when it comes to goods, here are some things you should get right now.

Mobile apps

To put it simply, taxes would not directly affect most digital goods and services. This includes apps for phones.

“Unlike physical goods, apps don’t need to be shipped, made, or sourced overseas, so there are no extra costs when they cross borders,” said Gary Gray, co-founder of CouponChief and an expert on personal finance.

Subscriptions for streaming

For the same reason, streaming services like Netflix and Disney+ shouldn’t raise their prices, at least not because of taxes. But that doesn’t mean prices won’t change for other reasons.

For example, NPR said a few months ago that Netflix raised its prices. Prices ranged from $7.99 for “standard” with ads to $24.99 for “premium” without ads. The prices have gone up by $1, $2.50, and $2, respectively. This price increase comes after a price rise just a few months ago.

Travel Services for Pets

There is good news for people who like to travel and bring their pets with them. Pet travel services don’t charge very much.

Gray said, “You can help pet owners who want to plan trips with their pets but don’t want to pay the high cost of bringing their pets into the U.S.” “As long as a proper health check has been done, there are no tariffs.”

Drop-shipping digital goods

Again, dropshipping shouldn’t raise its prices even if taxes do. This is because it’s digital.

“You don’t have to worry about shipping or raw material costs when you sell digital goods like eBooks, software, or online courses,” Gray said.

Help in Your Area

Most of the time, tariffs don’t apply to local services like dry cleaning or exercise classes.

“Tariffs only affect imported goods,” said Joseph Camberato, CEO of National Business Capital. “They don’t affect local services like your barber, accountant, or dog groomer.” “Prices shouldn’t go up or down there.”

Still, the costs of some of these services’ materials might go up. You might have to pay more money because of that.

“It gets tricky when there are service jobs that need a lot of tools or materials.” “Let us look at HVAC as an example,” Camberato said. “The cost of labor probably won’t change, but what if you need to put in a new unit?” This is where taxes might come in handy. You will likely have to pay more if the equipment is made in another country. You’re safe if it’s made here.

Some medical services that don’t make money

The cost of health or medical services could go through the roof if tariffs are put in place. This is especially true since a lot of medical supplies, tools, and drugs come from other countries.

But it might not happen in some places (or at least not as much).

David Navazio, CEO of Gentell, said, “If you look at healthcare settings that are not-for-profit (about 30% of nursing homes and 60% of hospitals), they might be able to avoid the price hikes if they could find a way to keep prices the same and still cover their overhead costs.”