Are you thinking about purchasing some of your favorite items soon? Well, there’s some big news you might want to consider before shopping. Tomorrow, a series of tariffs signed by President Donald Trump will come into effect, potentially increasing the cost of a few common necessities. Let’s dive into what you might want to purchase sooner rather than later.
The Impact of New Tariffs
President Trump’s new tariffs aim to hold countries like China, Mexico, and Canada accountable for various trade issues. The tariffs include a hefty 25% on goods from Canada and Mexico, and 10% on products from China. This measure is part of a broader strategy outlined by Trump under the International Emergency Economic Powers Act to control the flow of foreign goods into the U.S.
1. Mobile Phones
If a new smartphone is on your wishlist, you might want to buy it today. Manufactured predominantly in China, these devices will see a sudden price increase of 10%, thanks to the tariffs. Currently, China is responsible for producing over 30% of all cell phones globally, with many top brands like Apple relying heavily on Chinese manufacturing. Grab your phone now before prices escalate.
2. Liquor
For those who enjoy an occasional glass of tequila or whiskey, it’s time to stock up. The U.S. imports vast quantities of spirits from both Mexico and Canada. With the new tariffs in place, you can expect the cost of these delightful beverages to rise. Mexico alone shipped $4.6 billion in tequila to the U.S. in recent times, with Canadian whiskey also flowing steadily into American markets.
The tariffs don’t just end there. The U.S. is expecting retaliatory measures from Canada and Mexico, meaning American-made spirits could also face increased duties abroad. If you have a favorite international spirit, now might be the best time to purchase it.
3. Cars and Auto Parts
Cars and auto parts are another industry facing steep price increases. Over 20% of vehicles sold in the U.S. come from either Canada or Mexico. In 2023 alone, imports included $69 billion worth of vehicles from Mexico and $37 billion from Canada, not to mention the substantial amount in car parts.
If you’re planning on buying a new car or need parts for your current vehicle, it could be a good idea to make those purchases today. With transportation costs on the rise, it’s worth considering any automotive needs you might have in the near future.
4. Popular Toy Trucks
Many of us remember playing with classic Tonka trucks as children. These nostalgic toys, all manufactured in China, are bound to get more expensive soon. Over a million of these iconic trucks are sold annually in the U.S. Consider purchasing these toys now, especially if there are little ones in your life who love them as much as you did.
5. Gasoline and Crude Oil
Perhaps most concerning for many is the increase in gasoline prices we might soon see. Canada alone imports billions of dollars’ worth of crude oil to the U.S., making it the top supplier. Although the tariff on Canadian oil remains at 10%, the consequences will be felt at gas stations nationwide.
TD Economics anticipates that gas prices could rise by as much as 30 to 70 cents per gallon. If you’re planning a road trip or regularly commute long distances, refilling your tank ahead of these changes might save you some money.
6. Fruits and Vegetables
Finally, don’t forget to consider your favorite fruits and veggies. The U.S.’s agricultural imports from Mexico totaled over $45 billion, with huge portions of all farm products crossing from the southern border. Given that, these tariffs might affect the cost of everyday grocery items like tomatoes and avocados.
An increase in fruit and vegetable prices could affect your weekly grocery budget negatively. Stocking up on fresh produce today could be a smart plan if you’re hoping to avoid higher costs later.
There you have it. These upcoming changes in tariffs could have a sizable impact on everyday purchases, so consider these items before potential price changes come into play. It might be an ideal time for a quick shopping spree. Happy buying!
