[Why Trump’s Proposed Tariffs Could Cost You $2,600+ per Year
During the holiday shopping season, some bargain hunters may wonder if it’s a good idea to stock up on items before they become more expensive. The reason is that there are only months left before President-elect Donald Trump takes office, where he’s promised to enact steep tariffs on imports. While there are many unknowns about his plan, one thing seems clear: Tariffs will rise, and if history is any guide, price increases will likely follow.
Trump has announced plans to slap a 25% across-the-board tariff on imports from Mexico and Canada, as well as an additional 10% tariff on Chinese imports starting on Day 1. On the campaign trail, he pledged a 60% tariff on goods imported from China and a 10% to 20% tariff on goods from other countries.
Trump’s threats may be negotiating tactics, but if tariffs do happen, they could significantly increase consumer prices on nearly everything that isn’t entirely US-made, which isn’t much these days. So, it’s not too early to start planning ahead – your wallet may thank you later.
Here are some items you might want to consider putting on your holiday shopping list now to get ahead of possible tariffs:
* IPhones and other smartphones: With China accounting for 78% of US total imports, a 10% across-the-board import tariff, plus the additional 60% on Chinese goods, could cause the price of a new smartphone to rise by 26%.
* Vacuums, hair dryers, and kitchen appliances: A 10% tariff on all imports and an additional 60% tariff on imports from China would boost the price of the average household appliance by 19.4%.
* Gaming consoles: The price of a new gaming console could go up by nearly 40%, taking into account the 10% tariff on all imports and an additional 60% on Chinese goods.
* Computer monitors: The average computer monitor could jump by over 30% under Trump’s tariff plan.
* Laptops and tablets: A 10% across-the-board import tariff plus the additional 60% on Chinese goods could result in a 45% increase in the consumer prices for laptops and tablets.
* Shoes: The price of some shoes could rise by at least 18%, as brands consider moving to new manufacturing countries to save on costs.
* Toys: The price of some toys could rise by 36%. China accounted for more than 77% of total toy imports last year.
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