September 12, 2024
by Matt Remuzzi
CARLSBAD, CA – The consequences of the Trump vs. Harris presidential election for online sellers are obviously difficult to predict and subject to a million variables. One the one hand, if Republicans win and impose widespread tariffs on Chinese imports, it will very likely depress sales and margins for online sellers who are sourcing goods from that country—and a high percentage are sourcing from China.
On the other hand, if Democrats win, there is the definite possibility of higher income taxes and the expiration of previous Trump-era tax breaks for business owners—which will also cost sellers more. Either way, my prediction is there could be some pain ahead for a lot of online sellers, regardless of who wins. My prediction depends on if (and that’s a big if!) the candidates follow through on their campaign promises.
I admit that sounds kind of pessimistic. However, I don’t think there is cause to be pessimistic. With every new change we generally find there are challenges, but also new opportunities.
If tariffs do come into play, there are already people working on new distribution channels via Vietnam, Mexico, and other countries to mitigate those costs. With new tax laws often come new tax strategies to likewise bring rates back down to more tolerable levels.
Therefore, although I can certainly imagine some ways in which either party winning could be tough for online sellers, I am also positive that entrepreneurs are generally great at finding ways to uncover new opportunities in times of change. I don’t expect things to be any different this time around.
Matt Remuzzi is owner of CapForge Bookkeeping, Tax & More based in Carlsbad, Calif. Remuzzi is pictured above at Prosper Show 2024 at the Mandalay Bay Convention Center in Las Vegas.
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