The US economy is bracing for the impact of President Donald Trump’s sweeping tariffs, which are expected to increase prices for everyday items. To avoid higher costs, some consumers are rushing to buy now, with sales surging 11.2% in March for imported cars.
However, experts caution against going into debt to get ahead of the tariff effect. With nearly all US trading partners subject to a 10% tariff and reciprocal tariffs expected April 9 for 60 trading partners, concerns about increased prices and shortages are growing.
Ted Rossman, a senior industry analyst at Bankrate, warns that consumers should take a long view and consider their long-term financial situation and goals. “Don’t make it worse by panic buying,” he said. “Rushing to make a big purchase often doesn’t end well.”
Experts also note that while stocking up on essential items may be sensible, buying only what can be afforded is crucial. With the average American household carrying about $6,600 in debt, taking on more debt can exacerbate financial difficulties.
Mark Cuban, billionaire entrepreneur, advises consumers to “buy lots of consumables” now before prices rise. However, experts disagree that this approach will lead to widespread shortages. Instead, they emphasize the importance of a measured approach and careful consideration of long-term financial implications.
As the US economy prepares for the tariff-induced shopping spree, experts urge caution against going into debt and encourage consumers to prioritize their financial stability over temporary savings.
Source: https://abcnews.go.com/US/debt-beat-tariffs-experts/story?id=120503824