A growing number of Americans are buying goods and upgrading appliances in anticipation of potential price increases due to tariffs imposed by President-elect Donald Trump. According to a survey, 25% of consumers expect prices to rise next year, up from 10% last month, and a record high.
The University of Michigan’s monthly survey found that the consumer-price index grew 2.7% year-over-year in November, driven by durable-goods purchases linked to Trump’s tariffs on imports from countries like Canada, Mexico, and China. Economists warn that by spending now, people could inadvertently drive up prices.
Some consumers are taking action to get ahead of potential price increases. Gerard Szarek is stocking his basement with coffee, olive oil, and paper towels in preparation for Trump’s policies. He fears that Trump’s migrant-deportation plan will raise labor costs and lead to higher prices on domestic goods.
However, experts say that businesses may also be passing these costs onto consumers. Best Buy CEO Corie Barry stated that the majority of tariff increases will likely be passed on to customers as price hikes. Walmart, Lowe’s, and AutoZone have also warned about potential price increases due to tariffs.
To prepare for the worst-case scenario, some consumers are buying now in anticipation of higher prices. Tia Hrubala, a designer, recently spent $293 to replace her car battery because she feared prices would rise if she held out for another month. Christina Liu, an electronics enthusiast, spent over $1,600 on new GPU and CPU chips due to the looming US-China trade war.
As businesses prepare for the potential impact of tariffs, consumers are advised to be cautious and consider buying now before prices increase.
Source: https://finance.yahoo.com/news/americans-stockpiling-ahead-tariffs-103000588.html