With Donald Trump's tariffs set to take effect next month, here are five items that you should probably buy beforehand.
Trump’s second term has been defined by tariffs, with sweeping measures announced in April on what he dubbed ‘Liberation Day’ for the United States.
Delays in implementation have led to a volatile stock market, and while the White House had promised “90 deals in 90 days,” there “won't even be nine deals done by the time we reach Trump's first cut-off date on 9 July,” per BBC News.
The White House has extended the deadline to August 1, with a “possibility of further extensions - or delays - to come.”
But the writing is on the wall: these tariffs are coming, and consumers will feel it. Treasury Secretary Scott Bessent has made it clear that the focus is on 18 countries responsible for 95% of America’s trade deficit.
Meanwhile, Forbes has outlined five specific items you should buy now before prices spike:
Tech: If you’ve been eyeing a new iPhone, laptop, TV, or printer, don’t wait. While Forbes notes uncertainty over how much tech prices will rise, buying now avoids the risk of post-tariff sticker shock.
Furniture: With roughly 75% of furniture sold in the US produced overseas, you can expect sofas, office desks, and dining tables to cost more. Unless the US furniture industry can ramp up production, consumers will foot the bill.
Textiles: From shoes to men’s shorts, crossbody bags, and bath towels, textiles are heavily imported and will be impacted by tariffs. If you need new sneakers or summer clothes, buying before August could save you money.
Food: Perhaps the most critical category, food prices are expected to rise. The US purchased over $45 billion in food and farming products from Mexico in 2023, including two-thirds of all imported vegetables and nearly half of all fruits and nuts. With tariffs looming, price hikes will likely hit your grocery bills.
Home Appliances: Tariffs on steel products have already driven up prices for washing machines, fridges, and dishwashers, and new measures could make these appliances even pricier.
Despite initial delays, the reality is that “revenues from tariffs are starting to pour into the US Treasury coffers, with record receipts in May.”
The effective tariff rate on imports to the US has jumped from 2%-4% over the past 40 years to about 15% — and that’s before the upcoming changes.
Trade partners are not taking these tariffs lightly. “Japan and South Korea were singled out for the first two letters, which effectively further blow up their trade deals with the US.”
Japan’s finance minister has even hinted at using its ownership of the world’s biggest stockpile of US government debt as potential leverage.
As the US builds a tariff wall around itself, “the rest of the world is likely to trade more with each other,” evident in recent deals between the UK and India, and the EU and Canada.
Meanwhile, Chinese exports to the US have fallen by 9.7% this year, but exports to the rest of the world are up, including a 7.4% increase to the UK and an 18.9% rise to Africa.
It’s clear that the Trump administration’s aggressive tariff policy is reshaping global trade flows, and while the markets remain calm for now, “it might not stay that way.”