Tariffs and Your Wallet: What to Buy Now Before Prices Rise
June’s inflation increase may be the first signal that tariffs are beginning to impact consumer prices—but the worst might be yet to come. According to the U.S. Labor Department, the annual inflation rate rose to 2.7% in June, the highest since February. Prices have jumped for essentials like housing, food, and gasoline, along with import-heavy goods such as clothing, shoes, toys, and electronics.
Experts are warning that the full impact of tariffs—especially those implemented in April and May—may not be fully reflected in prices until later this summer. James Knightley, chief international economist at ING, predicts a stronger impact will show up in consumer prices around three months after tariff implementation. “We perhaps should be braced for some further increases in prices over the next few months,” Knightley said.
How Tariffs Could Hit Your Budget
Whether you feel the impact now or later, tariffs and your wallet are likely to clash. As retailers run out of inventory purchased at pre-tariff prices, costs will start to rise across the board.
If President Donald Trump enacts the sweeping tariffs he’s proposed for August, prices could jump even higher. Katherine Black, partner at global consulting firm Kearney, emphasized that smaller businesses in particular will struggle to absorb these increased costs. “They’re not rates that can be just absorbed by a retailer or a supplier,” she said. Large corporations might delay price hikes longer, but eventually, even they may be forced to pass the burden onto consumers.
What Prices Could Increase Soon
So, what should you buy now before tariffs drive prices higher? According to Knightley and Black, expect price hikes on:
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Cars: Higher steel and aluminum costs will likely push up prices.
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Electronics: Heavily reliant on imported parts.
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Apparel and Footwear: Already showing signs of inflation.
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Seasonal Items: Home decor and back-to-school goods could see increases.
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Prescription Drugs and Coffee: Potential targets in future tariffs.
Retail data shows consumers are already moving to get ahead of price increases. According to Bankrate, U.S. retail sales rose 0.6% in June, with notable increases in car sales (up 6.5%) and furniture sales (up 4.5%). “Tariff fears seem to be accelerating sales, at least in the near term,” said Bankrate analyst Ted Rossman.
Smart Shopping Tips Amid Tariff Uncertainty
While avoiding all price hikes may be impossible, there are ways to shop smarter:
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Stock up on essentials now while prices remain stable.
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Use price tracking tools like CamelCamelCamel and Capital One Shopping.
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Take advantage of sales during end-of-summer, back-to-school events, and tax holidays.
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Be strategic with discretionary purchases—wait if you can to assess how tariffs evolve.
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Look for preemptive sales: Some retailers may have raised prices early to offer deals later, especially around Labor Day.
Adam Davis from Wells Fargo Retail Finance encourages consumers to be more thoughtful: “It’s a matter of taking advantage of those promotional periods.”
Black adds: “I’d keep some powder dry for those months and go ahead and buy anything essential now.”
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