Shopping spree? Consumers rush to buy goods ahead of Trump tariffs
President Trump's latest tariffs are expected to drive up prices, and some shoppers aren't waiting around, rushing to make purchases they fear will soon cost more.
Initial estimates suggest that new-vehicle sales surged at the end of March, driven by consumers jumping in before new tariffs pushed prices higher, according to Cox Automotive. The research firm said March could end up being the best month for sales volume in four years.
"In the short term at least, shoppers have embraced a 'better buy now' attitude, betting on higher prices later this year," Erin Keating, an executive analyst at Cox Automotive, wrote in an analysis.
Those fears are not entirely unfounded, with auto experts warning that Trump's tariffs, particularly the taxes levied on car parts, could cause production to plummet.
Wednesday's "Liberation Day" marked a major escalation in a Trump-initiated trade war that may lead to higher prices for cars but also coffee, beauty products, electronics and a range of other goods.
Trump's 10 percent baseline tariff on imports from all countries will take effect on April 5, and his reciprocal tariffs, whose rates vary by country, start April 9.
Shortly after Trump's announcement, billionaire businessman Mark Cuban told his social media followers they should consider buying "lots of consumables now" before prices rise.
"From toothpaste to soap, anything you can find storage space for, buy before they have to replenish inventory," Cuban wrote on the Bluesky social media platform.
Cuban added: "Even if it's made in the USA, they will jack up the price and blame it on tariffs."
Some shoppers appear to be heeding his advice.
"Now is the time to buy," 50-year-old Noel Peguero told The Wall Street Journal as he loaded a 40-inch television from Hisense, a Chinese brand, into his car outside a Best Buy in New York City.
Melanie Moroz, who lives in West Virginia, told Business Insider she's been stocking up on makeup, skincare and hair products amid the recent economic uncertainty.
A CreditCards.com survey in February found that 1 in 5 Americans were purchasing more items than usual, primarily due to concerns over the Trump administration's tariffs.
Others insist that now isn't the time to panic-buy.
"These tariffs may not persist at anything like the amounts currently in the headlines," Ron Lieber, the Your Money columnist for The New York Times, wrote Friday.
Lieber cautioned: "You also need to have real money — extra real money — to lay a bunch of things away in your residence. Many people don’t, and going into debt to buy extras of everything will probably erase any savings."
Consumers may want to be especially careful not to overextend given the economic uncertainty ahead. Top economists recently raised the odds of a recession in the next year, and millions of Americans have watched the value of their retirement portfolios drop as stocks continue to slide.