Panic buying: “Consumers are expecting sharply higher prices the next year and are clearing the store shelves”
People are getting their shopping in ahead of the tariffs set by Donald Trump.
Ahead of the introduction of Donald Trump’s high tariffs, shoppers in the United States are stocking up on products expected to get much more expensive over the coming weeks.
Earlier in the month, the former reality TV star turned politician announced insane tariffs on every country on Earth except Russia, Belarus, North Korea and Cuba, sending the financial market plummeting in some of the craziest hours in modern history.
While some counties are striking deals with the President, plenty of others aren’t, and the tariffs will soon make goods more expensive in the States as the ordinary working person quite literally pays for Trump’s decisions.
‘There are lots of questions around what could happen’
Amidst the uncertainty, shoppers have taken to the high street to stock up, with the Commerce Department recently announcing a 1.4% rise in retails sales for March, a figure which comes after a 0.2% rise in February.
Rather than show an upturn in the economy, the numbers reflect the fear and uncertainty from people who simply have no idea how things will unfold in the very near future.
Christopher S. Rupkey, chief economist at FWDBonds LLC, said that “these are simply blow out numbers on March retail sales where the rush is on like this is one gigantic clearance sale. Consumers are expecting sharply higher prices the next year and are clearing the store shelves and picking up bargains while they can. ”
EY Senior Economist Lydia Boussour reflected the sentiment, saying on Wednesday that “with the economy set to cool sharply in the coming months as tariffs take their toll, price-sensitive consumers are poised to become more judicious with their spending and reduce their nonessential purchases.”
Daniel Holland of Charlotte, N.C., told AP that he was “aware” of the incoming increases, “especially with bike parts or just anything manufactured overseas. I think right now there’s a lot of questions around what could happen and what’s directly affected, whether it’s just parts or the entire bikes in general.”
At the time of writing, Trump has placed a standard 10% tariff on imports from most countries. However, Chinese goods have been dealt a combined tariff rate of 145% after seeing various incremental bumps added during periodic moments of Trump outrage; China has retaliated with a 125% tariff on U.S. imports. Products coming from Canada and Mexico face tariffs as high as 25%, which is also the rate applied to imported cars, steel, and aluminium.
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