By Claire Ballentine and Will Kubzansky
From air-conditioned suburban malls to conspicuous consumption and the promise of free shipping, shopping is practically an American pastime — especially when there’s a deal to be had. So with President Donald Trump’s April 2 announcement and the prospect of imminent higher prices across the board, it’s no surprise that people were busting out their credit cards and panic-buying; in March, retail sales increased 1.4%, the most in two years.
US Retail Sales Surge Before Tariffs
Consumer purchases in March rose to the highest in two years
Feeding the financial anxiety are headlines about companies urging shoppers to “buy before it’s too late” — not to mention that shelves could be sitting empty, a recession could be coming, and holidays are already looking dire. And, yes, there’s no denying many goods will become more expensive. Incoming cargo shipments have already plummeted and less inventory means more consumer competition, leading to price hikes.
Yet that doesn’t mean you should pack your shopping cart until it’s overflowing. “The tariff situation is dynamic,” said Kristy Xu, founder of Global Wealth Harbor. Her basic rules: Don’t buy stuff that could expire before use, or that you simply don’t need, and steer around anything that seems likely to end up being exempted. Here’s what supply-chain analysts, financial advisers and other experts recommend adding to your cart, and what’s a wait-and-see.
Green Light: Gadgets, Cars and Gear
Some consumer goods are staples of modern life — smartphones and car seats among them. If you need one of these items in the near future, consider purchasing them before prices potentially soar.
Upgrade Necessary Electronics
While Trump has so far exempted smartphones, computers and other electronics from his so-called reciprocal tariffs, he said levies on semiconductors and other consumer technology are planned. Electronics from China are also still subject to other levies, including a 50% tariff on semiconductors imposed by the Biden administration. Apple has shifted some production elsewhere in recent years — some iPhones to India and AirPods to Vietnam, for instance — though much of the company’s supply chain is still linked to China, said Willy Shih, a professor of management practice at Harvard Business School. “You have to appreciate the enormity of the capacity that was in China,” he said.
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