US residents are stockpiling goods in anticipation of potential tariffs under President-elect Donald Trump’s economic agenda, which includes higher tariffs on imported goods. The aim is to minimize the impact on consumers’ wallets.
A small business owner, Herschel Wilson, from Tacoma, Washington, started stockpiling essentials in August after Trump won the election. He has spent $300 since then and plans to spend an additional $100 extra each month. Wilson believes that higher tariffs will significantly increase prices on non-US made goods, affecting his business.
Trade experts are skeptical about the implementation of all proposed tariffs, but the potential impact remains significant. The tariffs could lead to increased prices for consumers, who may need to pay more for goods not produced in the US. Large companies, such as Stanley Black & Decker and US manufacturers, are also preparing for possible tariffs by building up inventory levels and contingency plans.
Some individuals, like Gaylon Alcaraz, a Chicago resident with over $200,000 in student loan debt, are stockpiling goods to avoid potential price increases. They argue that “robbing Peter to pay Paul” is not feasible given their financial burdens. Companies are taking proactive steps to mitigate the impact of tariffs on consumers.
While some individuals may feel it’s irrational to stockpile, many see it as a necessary measure to prepare for uncertain economic times. Wilson, who has three kids under 13, aims to minimize the expense later by having enough goods stored away now.
Source: https://edition.cnn.com/2024/12/16/economy/stockpiling-fear-higher-tariffs/index.html