If there’s one message that we’ve heard over and over about the trade war, it’s that life is going to get more expensive. And that could be a reason to do some shopping right now.
U.S. President Trump’s latest round of tariff increases from 10% to 25% on U.S. imports from China includes some increases that will probably creep up on you, like those for food and cleaning products. There are some big-ticket increases coming as well, for items like mattresses and luggage.
But that’s not all, folks: Another round of tariff increases on additional categories could start in early fall, economics professor Katheryn Russ told CNBC. Those increases, which would impact electronics especially, could make sticking to your holiday budget more difficult.
“The proposed list would cover nearly every consumer product left untouched by previous tariffs,” Reuters noted.
Seeing as Australia is a massive import country, where we import literally everything from overseas, we are not going to be immune from these changes and will find these price changes in the U.S. and China trickling down to our half of the hemisphere. As the New York Times explains, " Australia’s economy is particularly sensitive to the economic scene in China, its largest trading partner and a major buyer of Australian food and minerals. If broader tariffs hurt Chinese growth, Australia will feel the impact."
What’s worth buying before prices start to spike on the anticipated next round? If you’re already planning to make a purchase in the following areas, you may want to buy sooner, rather than later.
Back-to-school supplies: Clothing, shoes, backpacks, and pencil sharpeners
Sporting goods and camping equipment
Electronics: Video game consoles, TVs, laptops, tablets and smartphones
“If you were planning a large purchase six weeks from now, you may want to make that purchase today,” David French of the National Retail Federation said in an interview with CNBC.
But of course, doing so with savvy requires having cash on hand. Don’t run out and charge new TVs for your whole family if you didn’t already plan to do so. Walk, do not run, if you are actually in the market for the above items.