One of Trump’s most notable policies is his tariff plans. Although the fine details have not been announced, president-elect Trump has floated various ideas, such as a 60% tariff on goods from China, a flat 20% tariff on every import, and a 100% tariff on Mexican-made goods.
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Tariffs are taxes created and imposed by governments on imported goods. Tariffs aren’t a new concept. In fact, most countries already have tariffs in place. However, Trump plans to raise tariffs across the board, which could mean higher prices on the goods you purchase.
“There is a quasi-consensus that Trump tariffs risk feeding inflation through increased production costs for imported goods,” said Jean-Baptiste Wautier, World Economic Forum speaker and Economic Policy Leader at Wautier Family Office. “That being said, a lot of the goods that the U.S. consumes on a day-to-day basis are imported, so people could likely see some real inflation on a lot of heavily consumed manufactured goods such as all electronics: TVs, phones, consoles, tablets; home goods: appliances, kitchenware, furniture; or apparel and footwear.”
Here are five things to buy now before potential tariffs come in 2025.
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Appliances
Most household appliances, like washing machines, refrigerators and ovens, come from China. With proposed tariffs of up to 60% on these imports, now might be the time to purchase the household appliances you’ve been pushing off. The same goes for smaller household appliances, like coffee makers, vacuum cleaners and other gadgets.
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Electronics
If you’ve been waiting to purchase a new electronic device, consider doing so before the tariffs go into effect. Most laptops, phones and TVs are shipped from overseas, and their prices rely heavily on global supply chains. Increases in tariffs may cause the price of these goods to increase, as suppliers don’t want to lose profit. If you plan to upgrade your home entertainment system or phone, now might be a great time.
Aluminum and Steel Products
China is one of the main hubs for sourcing aluminum and steel products. As potential tariff wars occur between the United States and China, stocking up on aluminum and steel products might be wise. Manufacturers of cars, appliances and household goods use aluminum and steel products, which could mean higher price tags in the next few months. Any product that you’ve been on the fence about purchasing that includes these raw materials may see price hikes soon.
“Some U.S. car manufacturers produce locally, so the relative price of their models compared to Chinese imports, for example, will become more attractive,” said Wautier. “If you consider buying imported cars, you might again either [accelerate] your purchase or look at U.S. alternatives.”
Clothing
The clothing industry is another sector that is heavily based overseas. Tariffs could make clothing more expensive, even at your favorite local retailer. Apparel companies that import raw materials to make finished garments will likely see an increase in material costs, which can be passed down to you through higher price tags.
Toys
China dominates the toy industry, making 79% of the toys sold in the U.S., according to Reuters. If your child has been eyeing a toy, consider purchasing it now to save for later. Higher import fees can disrupt supply chains and make toys more expensive. Similarly, as the supply of toys decreases, demand will increase, further hiking prices. Consider stocking up for birthdays, special events and even Christmas next year.
The Bottom Line
Although it’s not ideal to expedite purchases you would make throughout the year, buying before tariffs go into effect can be a good idea. Large items, like a refrigerator, will likely increase more significantly than a small toy. Think about the items you’ll purchase over the next few months to see if buying before tariffs go into effect makes sense.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: The Trump Economy Begins: 5 Things To Buy Now Before Potential Tariffs in 2025