The holiday season filled with gift-giving and delight is here! Right after the holidays, the US will likely see a number of tariffs as Donald Trump enters office on January 20, 2025. A tariff can affect the prices of goods of all kinds, from consumer electronics to clothing. With Trump’s tariffs likely coming into play soon, what should US consumers expect? What should they purchase now before prices increase?
How Significant Will Tariffs Be?
Trump takes office in mid-January and says a 25% tariff will be imposed on Mexico and Canada. Trump claims that Canada and Mexico are taking in all types of goods from China, then raising the prices and selling the items to the U.S. Also, both Mexica and Canada are too lax in terms of drugs like fentanyl. Trump also views migrants illegally entering the US as a problem and is thus setting up these tariffs.
Trump also plans to implement an additional 10% tariff on China in addition to any current tariffs on the country. Prices of goods coming from Mexico, Canada, and China will certainly increase. However, what does that mean for the average American consumer?
What should I buy before Tariffs get put in place?
Very little of what American consumers purchase is solely made in America, so many product prices will be impacted. The Consumer Technology Association, or CTA, stated that many types of electronics will be specifically affected. In a recent statement, they said that tariffs on China would “cause huge price increases for U.S. consumers: laptops and tablets are predicted to rise by 46%, video game consoles by 40%, and smartphones by 26%.”
While not everyone will buy video game consoles, many will replace smartphones and other technology in the coming years. For anyone considering buying laptops, tablets, video game consoles, or smartphones in the next few years, it may be wise to make that purchase now rather than a few years later.
Smaller electronics, such as kitchen appliances, will also be impacted. A study conducted by the National Retail Federation estimated that apparel, toys, furniture, household appliances, footwear, and travel goods will all increase in price. While it’s not practical to buy 4 years worth of clothes in the next month or so, it wouldn’t be a bad idea to buy a few extra pairs of jeans or sneakers to stay warm and keep consumers wallets a bit happier.
Featured Image Credit: Kaboompics.com: Pexels; Thank You!
