The new tariff policy implemented by President Donald Trump is hitting Americans harder and faster than anticipated and many have been left scrambling to get ahead of it. The ones that are hitting the hardest to both companies and clients are the ones imposed on China, where a lot of our day to day products are manufactured.
The recommendation to shoppers is clear, if you have something sitting in your online cart, now might be the time to stop waiting and go ahead with that purchase, as those shoes or that sweater you have been thinking about could cost nearly 20% more soon.
The impact of the new tariff policy on shoppers
While most of us do not like to think where our goods come from, after all a nice piece of clothing loses its spark when we think about its production process, Chinese goods are entrenched in our economy, and one of the areas in which they have truly reigned supreme is electronics. Most of out tech is produced in China or abroad, so things like smartphones will see the sharpest price increases due to the tariffs. One estimate says that an iPhone 16 Pro Max, which already has a hefty price tag of $1,200, could get $350 more expensive, which will make some think twice before upgrading their devices unless it is necessary.
People are responding to the uncertainty of the new pricing by stocking up on essentials, especially products they use every day. One shopper, Marissa Hibbert, for example, made a point to stock up on skincare items, cleanser, sunscreen, moisturizers, and anything else that is part of her daily routine, after all a lot of those items are made overseas, and there is a real concern that they will soon cost significantly more.
But while this seems superfluous, after all it is just cosmetics, basics like rice, coffee, toothpaste, and soap are also in high demand as people try to get ahead of price increases and even billionaires are recommending to load up now on the things that you know you will use.
This is starting to sound once again like the panic buying that took place in the early days of COVID, but the reality is that most people cannot afford to pay more for daily essentials. That said, experts are urging people not to panic buy, as again with what happened with COVID, you do not want to end up overstuffing your pantry with things you will not use before their best-by date just because you are scared of rising costs. Focus on your bare essentials and take it from there.
Every are of our lives will be affected by the price increases, appliances and cars are potentially the most expensive things that are on the list for everyday Americans that will see incredible price increases. Since these are already major purchases, no one is just impulse purchasing them, but if you are in the market for an upgrade, now is the perfect time to compare prices and act before the cost climbs.
The new tariffs policy is not all encompassing just yet. For now the focus is put just on goods and not services, but some companies, like airlines offer a hybrid of both (the service is the flight, but the goods are the tickets) and so even travel is being affected by the changes. One airline already announced that they will be pausing any expansion of future routes and pulling back on its forward guidance, which they linked to tariff uncertainty.
Although the price increases will not happen overnight, after all there is still plenty of stick in the country and some time to pivot to more locally sourced good or at least goods that come from countries with lower tariff policies applied to them, they will start showing up gradually as new inventory rolls in and the longer you wait, the more likely you are to feel the impact.