12/19/2024

Before Trump’s New Tariffs, Americans Rush to Buy Cars and Appliances

Households, businesses are stocking up before Jan. 20, 2025

Americans are scrambling to stock up on cars, appliances and other big-ticket imports in anticipation of new Trump administration tariffs — a spending spree that could reignite the very inflation buyers are hoping to avoid.

President-elect Donald Trump has vowed to enact widespread tariffs as soon as he takes office in January, a move that economists say could lift prices for just about every type of import, including food, cars, computers and gas. Although Trump has offered few specifics, he has said his planned policies would take aim at America's three largest trading partners, with 60 percent tariffs on all Chinese imports and 25 percent tariffs on goods from Mexico and Canada.

There are signs that price-sensitive households and businesses already are shifting their spending behavior to guard against further cost increases. New data this week showed that Americans spent $3.6 billion more on vehicles and auto parts in November than they did the month before — a notable bump in an otherwise lackluster retail sales reading. Spending on electronics and appliances also rose last month, which economists attributed to a combination of Hurricane Helene-related repairs and households preparing for new tariffs.

Please select this link to read the complete article from The Washington Post.