It’s Not March 2020, but It Feels Like It: Americans Stockpile Goods Amidst Tariff Fears
Herschel Wilson, a father of three from Tacoma, Washington, started stockpiling essential goods for his family in August, fearing that President-elect Donald Trump’s economic agenda would lead to higher tariffs. He’s spent $300 so far and plans to spend an additional $100 per month on top of regular grocery spending.
Unlike the pandemic, when Wilson’s main concern was finding essential goods, this time it’s the potential cost of those goods that’s driving his stockpiling. He believes that if Trump follows through with his tariff threats, prices will skyrocket, and he wants to be prepared.
Wilson is not alone in his concerns. Many Americans are stockpiling goods, with some even taking out loans to do so. Gaylon Alcaraz, a Chicago resident, has accumulated over $200,000 in student loan debt and is worried about the potential cost of goods in the future. She and her mom are stockpiling goods, including toilet paper, cleaning supplies, and other essentials.
Large companies are also taking steps to prepare for potential tariffs. Stanley Black & Decker is investing in building up higher inventory levels to limit the impact of tariffs on its goods. US manufacturers are also increasing their safety stocks to help blunt the immediate effects of tariff increases.
Trade experts and economists are skeptical that Trump will impose all the tariffs he’s pledged to, and some predict that certain goods will be excluded from tariffs or that Trump will back off on imposing new tariffs altogether. However, the potential tariffs have the potential to significantly increase the prices consumers pay on nearly everything that isn’t made entirely in the US.
Scott Lincicome, vice president of general economics and trade at the Cato Institute, discourages individual consumers from stockpiling goods, citing the potential for higher prices and empty store shelves. He also notes that any money spent on stockpiling means consumers have less to spend in other areas.
Ultimately, whether or not Trump follows through with his tariff threats remains to be seen. But for those like Wilson and Alcaraz, stockpiling is a way to feel prepared for the potential consequences of his policies.
