Trumps Tariffs

Tariffs and You: What Will Cost More, When Prices Will Rise, and What to Buy Now

If you've been following the news, you know that President-elect Donald Trump has promised to impose import tariffs on products coming into the U.S. from countries like Mexico, Canada, and China starting on his first day in office. In simple terms, a tariff is a tax on imports, and many experts believe that consumers will end up paying higher prices as a result.

A recent survey by the University of Chicago found that over 90% of economists agree that consumers will likely bear much of the cost of these tariffs. So, it’s natural to wonder: What products will cost more? When will the prices go up? Should I rush out to buy things now?

Here’s a breakdown of what we know so far.

Which Products Will Cost More?

If you're hoping to make a list of products to avoid, you might be disappointed—because the list is long. Many everyday items could see price hikes due to tariffs.

According to Robert Handfield, a professor at North Carolina State University, products like clothing, shoes, electronics, and toys could be the most affected. "Most apparel and footwear come from China and Mexico. Computers, electronics, and almost all toys are also made there," he explains. So, if you’re eyeing a new pair of shoes or a fresh batch of holiday toys, you might want to think ahead.

The National Retail Federation has identified over 500 items of clothing that could get more expensive. USA TODAY has also highlighted many food items that could be impacted by tariffs.

Some experts predict that higher-tech, high-value items like cars, appliances, and computer chips might see the biggest price increases. 

James Knightley, chief international economist at ING, believes these products will be targeted for tariff hikes because they’re linked to higher wages or national security concerns.

Although not all economists agree on the outcome. Jeffrey Roach, chief economist at LPL Financial, points out that during Trump’s first term, despite tariffs being implemented, inflation stayed relatively low—peaking at just 2.9%. So, it’s still unclear whether tariffs will lead to major price hikes.

When Will Prices Rise?

Prices are likely to rise gradually at first, then suddenly. This is a phrase from Ernest Hemingway's The Sun Also Rises, and it might be true here too. At the start, just hearing about new tariffs could cause people to panic-buy big-ticket items or stockpile smaller products, which could push prices up even before the tariffs actually take effect. 

If Trump follows through on his plan to announce tariffs on his first day in office, some prices might go up immediately. However here’s the thing: the process to actually implement a new tariff takes time. 

After a tariff is announced, the U.S. Commerce Department needs to investigate the specifics, which could take up to 270 days. Then, the president has 90 days to review the findings before making a decision. Finally, the tariffs themselves may take another 15 days to kick in. 

Even after tariffs are put in place, they won’t apply to products that are already sitting in U.S. warehouses. Retailers will likely continue to sell off existing inventory for months before passing on the higher costs.

Should You Rush Out and Buy Stuff Now?

If you’re considering filling up your cart with soap, toothpaste, or other household items just in case prices go up, that's entirely up to you. However, experts say it’s not realistic to think you can stock up on everything that might become more expensive due to tariffs.

Buying products now assumes that tariffs will cause prices to rise. Some economists, like Jeffrey Roach, don’t think the price hikes will be as dramatic as people expect. So while it might be tempting to stockpile, it's unclear whether that will really save you money in the long run.

In short, there are a lot of unknowns. But now you’ve got the basics: tariffs could lead to higher prices, but when and how much is still up in the air. So, before you rush to the store, it might be worth waiting to see how things unfold. As always for the latest information and conversation stay tapped in with Industreets!

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