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The cleaning fees have yet to hit his local Costco shelves, but Trinidad Estrada is already sought a financial impact on his family.
A retired construction worker in Los Angeles said prices were already high, but the financial disruption and fear of inflation driven by President Trump’s tariffs add pressure to the economy.
He and his wife live on bonds, and the couple is separated from beef, pork and chicken.
He said one bright spot was that the prices of eggs had dropped.
“Look, all I’m buying is eggs,” he said he loaded four cartons into the trunk. “Our check, I don’t know if it can make it.”
As stocks decline and economists anticipate price hikes across a wide range of imports, there are plenty of unsettling questions in the recent supermarket aisles.
Some people are less likely to buy and are looking for ways to pinch pennies. Others stock some items in anticipation of price increases.
The trade war tensions have risen even higher, as Trump vows to impose a total of 104% obligation on products from China starting Wednesday.
Economists warn that it will hurt shoppers at grocery stores, department stores and car dealers.
Federal Reserve Chairman Jerome H. Powell said consumers have not yet recovered since pandemic-era inflation peaked in mid-2022, and it is unlikely that tariffs will support it. In fact, they could have the opposite effect.
Before this year, Maria Gonzalez and her family made small changes to adjust for higher prices — reducing eggs, more chicken, and less beef — but she has recently been even wiggling. It makes me irritated.
“We’re trying to buy only what we need and searching for deals,” Gonzalez said. “You really can’t do anything, do you?”
Why do tariffs affect daily purchases?
Most of the products that rely on Americans are manufactured overseas.
At this time it is unclear how much the price will increase with everyday items such as food, clothing, medicines, or large ticket items such as furniture, electronics, appliances, vehicles, and car parts.
What’s clear is that shoppers, together with importers and businesses, create tariff bills. This is because US companies importing foreign goods pay customs duties. These funds go to the US Treasury Department, where businesses usually pass costs to consumers through higher prices.
Costco shopper Steve Kalman said he is cutting back on “luxurious” items such as eggs.
When he discovers a sale, he tries to stock up on items as much as he can, but there are restrictions. He can fit only a lot of eggs in his fridge.
“It’s difficult in a pocket book, and I don’t see it feeling relieved,” he said as he dropped off a groceries-filled cart outside Costco on Monday.
The increase could be a few percentage points for some products, but it’s not the same across the board, according to Christopher Thorneburg, founding partner at Beacon Economics.
As the Trump administration and foreign governments struggle with accurate tariff ratios, U.S. companies say shoppers are rising prices aren’t too high as they negotiate deals with overseas suppliers and are looking for material elsewhere.
With negotiations still occurring, there is still a lot of uncertainty regarding how tariffs will affect the economy.
“Without a different resolution, consumers may see the impact in the coming weeks,” said James Mose, an associate professor at the University of New Haven.
And it is still unclear how long these tariffs will last.
Mohs said many experts say the inflation effect will be short-lived, but last week “it could be more lasting,” Powell said.
According to analysts at Yale’s Budget Lab, Trump’s tariffs will result in a loss of $2,100 per year for average households and $980 per year for low-income households in the first week of April alone.
Do you need to buy before tax?
it depends.
“Given the unlikely supply line shortages are not expected, anticipated price increases, bulk purchases and stockpiles are not the only good choices to mitigate future price increases,” Mohs said.
If shoppers return to pandemic-era stockpiles, then all of a sudden everyone runs to the store and grabs the same thing and creates shortages.
“I hope that customers don’t get into panic mode because it hurts everyone,” Tan said.
With so many links in the supply chain, it is difficult to predict which grocery stores will be slapped at tariffs and how much.
For example, chocolate bars made in the US but imported with cocoa beans could see a slight price increase. On the other hand, imported fruits such as avocados and strawberries are not subject to customs duties as they are protected under the US-Mexico-Canada agreement.
Soon, more grapes may come from Chile, where tariffs are low and prices are not too high on the register.
Market uncertainty and the possibility of a trade war looming, some people are not seizing opportunities.
Another shopper, Justin, just outside of Ros Ferris Costco, said he refused to give her last name, and she said she stocks coffee, vanilla and maple syrup. They are not essential items, she noted, but they are already rising in prices and she is worried that they may run low at some point.
“That might be hard to get later,” she said. “Everything is already very expensive.”
Experts warn that stockpiles may not help the big picture.
According to Thornberg, product shortages created by stockpiling and panic purchases often lead to price gouging.
However, if you have already put money aside to replace the HVAC system for your home, or if you are upgrading your aged car, he will suggest you buy it. These items “look a little more expensive after the big tariff slaps it,” he said.
Overall, the average customer needs[s] Be more vigilant about prices, to be more flexible and flexible from the items you buy, the store you buy,” Tang said.
If you are willing to shop for a better deal, you said you can find a price that fits your budget.
What should you know about the effects of past trade wars?
Tariffs have been part of the US trade policy since the nation’s establishment. However, during times of high tariffs, Robert Grotti, an associate professor at the University of Chicago’s Faculty of Politics, said they were consistent and targeted.
“There are few historical precedents for this type of rapid experiment in tariff settings, where one day, tariffs are declared, the next charges are dropped, or applied to all products in the country,” he said.
The difference this time is that tariffs are widespread and include all countries where we have large trade obstacles, Mohs said.
“This impact appears to be a combination of 2008 financial meltdown and dot-com bubble bathing,” he said.
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