Comments and Analysis by Anirban Basu
What to Buy Now
Appliances (Big and Small): If you’re planning to purchase any appliances like dishwashers, refrigerators, HVAC systems, washers/dryers, or even smaller kitchen gadgets, it’s wise to make those purchases soon. This also includes entertainment equipment such as TVs and speakers, along with power tools. Despite some appliances being manufactured outside of China, rising prices are expected due to parts sourcing and reduced global supply.
Toys and Games: With around $13 billion worth of toys imported from China annually, impending tariffs will likely drive up costs, particularly affecting small, independently-owned toy stores. Consider stocking up on holiday gifts for the little ones now.
Baby Essentials: Tariffs will significantly impact baby products, with 95% of strollers and 75% of infant furniture imported from China. If you foresee needing baby supplies in the next year, it’s advisable to purchase them now.
Furniture: Furniture imports from China, especially those made of plastic, will see a price increase. Consider buying any furniture you need soon to avoid higher costs.
Holiday and Party Decorations: Most Christmas decorations, along with those for other occasions, are made in China. It’s a good time to purchase any decorations you’ll need for the next holiday season.
Anything Plastic: With China producing about a third of the world’s plastic, expect prices to rise on most plastic goods.
Shoes: Since China accounts for about one-third of U.S. shoe imports, now is a good time to buy any shoes you’ve been eyeing. Athletic footwear will be hard hit so get that new pair of running shoes ASAP.
What Not to Buy Now
Toilet Paper and Paper Products: These items are primarily produced domestically and should remain stable in terms of pricing and availability. There’s no need to stockpile, but there will be a rush to stockpile by paniced consumers which can cause shortages and push prices up. So check your supply of TP and get in line!
Basic Clothing: The diverse supply chains for clothing should cushion the impact, so prices are expected to stay relatively stable. However, you an expect prices to jump for designer brands.
Personal Hygiene Products: These items are not significantly affected by the tariffs and can be bought as needed. But in time, shortages may develop and drive prices up.
Groceries and Pet Food: Similarly, the supply chain for these necessities is robust enough that we don’t anticipate major disruptions. There will be price increases but you really cant stockpile fruits and vegetables, maybe some opportunity for pet food–get your Chewy order in ASAP.