Why You Should Buy Now Before Price Hikes Hit: Tariffs on the Horizon

With the holiday shopping season upon us, there’s more reason than ever to hit the stores before January 20. President-elect Donald Trump has announced plans to impose tariffs on imports, which could lead to a significant increase in prices across various consumer goods.

What’s at Stake

According to Trump’s campaign promises, the U.S. will slap a 25% tariff on imports from Mexico and Canada, as well as an additional 10% on Chinese imports. This could have a far-reaching impact on consumer prices, with certain goods facing particularly steep price hikes.

The Automotive Industry

Cars, in particular, are likely to be affected. GM, Ford, and Stellantis, the Big Three automakers, rely heavily on Mexico- and Canada-based plants to produce vehicles bound for the U.S. market. About 15% of new vehicles sold in the U.S. last year came from Mexico, while 8% came from Canada.

• As a result, the average price of a pickup truck could rise by $3,000 in the U.S.
• Wells Fargo analysts predict that U.S. prices for vehicles entirely produced in Canada and Mexico would increase by $8,000 to $10,000.
• U.S.-assembled cars would not be spared, with tariffs expected to lift their prices by an average of $2,100.

Electric Vehicles and Beyond

Electric vehicles (EVs) are also at risk, facing a potential double-whammy of tariff-induced price hikes and the end of the federal tax incentive on EV purchases. This could lift the average price of an EV by at least 20%.

In addition, the National Retail Federation (NRF) is predicting huge increases in consumer prices on laptops and tablets, major household appliances, video game consoles, and smartphones, as well as e-bikes. According to the NRF, the price of the average household appliance would increase by 19.4%, while laptops and tablets could rise by at least 45%.

Price hikes would be even more pronounced for video game consoles, with prices expected to increase by nearly 40%. Smartphone prices would also rise by at least 26%.

In light of these potential price hikes, it may be wise to consider buying certain goods before January 20. Whether you’re in the market for a new car, laptop, or household appliance, it’s essential to stay informed about the impact of tariffs on consumer prices.