Emily Moen, a coffee shop manager in Omaha, was worried that President Trump’s tariffs could lead to higher prices for essential baby products, so she bought a car seat made in China on Amazon to avoid higher prices.
As the Trump administration’s trade war with China escalates, many consumers have rushed to purchase foreign-made products out of fear that companies could start to raise prices soon. Some have bought big-ticket items like iPhones and refrigerators, while others have placed orders for cheap goods from Chinese e-commerce platforms.
The White House imposed a minimum tariff rate of 145 percent on all Chinese imports to the United States, on top of other previously announced levies, including a 25 percent tariff on steel, aluminum, cars and car parts.
The Trump administration also ended a loophole that had allowed goods from China worth less than $800 to enter the US without tariffs.
Some consumers have been stockpiling goods in recent days, with purchases of canned and jarred vegetables up 23 percent, instant coffee up 20 percent and ketchup sales up 16 percent compared with the same period the week before.
The threat of higher prices has also prompted consumers to buy electronics, particularly iPhones. Apple makes roughly 80 percent of its iPhones in China, and the administration’s tariffs on Chinese goods could increase prices.
Gene Munster, a managing partner at Deepwater Asset Management, said that “there’s panic buying going on and panic selling by investors, too.” Tom Barnard, a university marketing director in Waco, Texas, bought a new iPhone for his mother, thinking that prices could rise later this year.
Some parents have even debated buying Christmas gifts eight months early to avoid higher prices. A Facebook group for families in the Los Angeles area shared notes about Apple products, video game consoles, and where they found the lowest prices.
Even though the recent surge in sales has provided a boost for some companies, retail analysts are concerned that firms are worried about consumers pulling back on spending. Wall Street economists have lowered their forecasts for growth and warned about a potential recession amid a global trade war. Consumer sentiment has also tumbled as households grow more anxious about inflation.
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