↓Skip to main content

5 things to consider buying before new tariffs take effect

·2 mins

Image

Trump’s Tariff Plans and Potential Impacts #

President-elect Donald Trump has announced plans for substantial tariff hikes, suggesting an imminent increase in import taxes and subsequent consumer goods prices. On his inauguration day, a 25% tariff on imports from Mexico and Canada, plus an additional 10% on Chinese imports, will be imposed. During his campaign, he also pledged a 60% tariff on goods from China and a 10% to 20% tariff on goods from other countries.

These tariffs may significantly raise costs for consumers on products not manufactured entirely within the United States. For example, 90% of avocados consumed in America are imported, with 89% coming from Mexico. Thus, a 25% tariff could further inflate costs on avocados and related products.

Tariffs function as a tax on imports, often impacting consumers as businesses pass along increased costs. If an across-the-board 20% tariff and a 60% tariff on Chinese imports are enacted, a middle-income US household might spend over $2,600 extra annually.

Specific consumer goods are likely to experience price surges. The price of household appliances could rise by 19.4%, turning a $650 refrigerator into a $776 expense. Electronics, currently excluded from many tariffs, face potential increases—a 10% tariff on all imports plus a 60% on Chinese goods could elevate laptop prices by 45%, translating to an additional $357.

A 25% tariff from Mexico could further inflate electronics costs. Statements predict that tariffs on allied countries like Canada and Mexico are counterproductive for US businesses and consumers. Electronics prices are likely to rise, with gaming consoles potentially increasing by nearly 40% and smartphones by 26%.

E-bikes are expected to become more expensive due to the high proportion of imports from China and existing tariffs. The overall economic landscape indicates that the imposition of these tariffs may lead to increased consumer prices across various sectors, with limited alternatives for production.