President-elect Donald Trump is set to take office soon, and some economists are advising people to buy certain items before he imposes new tariffs. These tariffs could raise prices on many products, including goods from Mexico, Canada, and China.
Trump has said he plans to impose a 25% tariff on goods from Mexico and Canada and a 10% tariff on Chinese products. The last time Trump was president, he put tariffs on items like solar panels, washing machines, aluminum, and steel. Economists predict that these new tariffs could make inflation worse and lead to higher prices for both businesses and consumers. The National Retail Federation warns that prices on things like clothing, toys, furniture, and household items could rise significantly.
Monica Morlacco, an economics professor, said the tariffs could hurt lower-income Americans the most because they tend to spend a larger portion of their income on goods. The average American family could lose between $1,700 and $2,600 in after-tax income annually. For lower-income families, this impact could be even more severe.
Experts are suggesting that consumers buy items before Trump takes office, especially products like smartphones, computers, and gaming consoles. Many of these products contain parts made in China, and the tariffs could increase their prices by as much as 25%. For example, a $1,000 phone could cost an extra $258.
Footwear could also become more expensive. Many shoes are made in countries like China, Vietnam, and Indonesia, and the new tariffs could cause prices for sneakers, sandals, and dress shoes to rise.
If you’re planning a DIY project, it might be a good idea to purchase construction materials now. Items like tools and building supplies are often imported from China, and the tariffs could raise their prices. The same goes for furniture. Brands like Ikea, which import many of their products, have already announced that prices will go up due to the tariffs.
For those looking to buy a new car, it may be wise to act quickly. The tariffs could raise the cost of vehicles, as automakers rely on parts from Mexico, Canada, and China. Some analysts predict car prices could increase by up to $2,500.
Finally, medication could also become more expensive. A large portion of the U.S.’s pharmaceutical ingredients come from countries like China and India. The tariffs could lead to higher costs for both generic and brand-name drugs. Some healthcare providers are advising patients to stock up on necessary medications before the tariffs take effect.
