What Should You Save Before Tariff Increases Begin?
If there’s one thing everyone knows about the impact of tariffs, it’s that no one knows anything. A common theme is confusion as tariff rates rise and fall on a day-to-day basis and trade deals are announced but don’t actually eliminate any tariffs.
So don’t be discouraged if you don’t know how to plan for upcoming events. The one thing everyone agrees on is that we will experience higher prices and shortages no matter what happens, because the last shipments of products not affected by the new tariffs have already arrived in the US. From here on out, it will affect most of the things you want or need. This may make you feel like it’s 2020 again and it’s time to start saving and stockpiling , but it’s not that simple: there are some items you might want to stash away a little to hedge against rising prices and shortages, but some items won’t break even if you load up on them. Here’s what you should (and shouldn’t) think about stockpiling.
What else to buy now
There’s a difference between panic buying and trying to protect yourself from the impact of tariffs, and that difference comes down to being thoughtful. Your first step in your rate savings plan is to focus on things you buy regularly or know you’ll need in the near future. A few key points to consider include:
-
Toys. Chinese factories produce about 80% of the toys sold in the US, so if you have children and want to have toys for birthdays, holidays and other events, you may want to plan ahead and stock up on these items as soon as possible.
-
Prescriptions and over-the-counter medications. Many prescription drugs already rely on a fragile and fairly tight global supply chain , so trade disruptions will likely make the long list of pharmaceuticals harder to find and more expensive. If you rely on prescriptions, figure out how large a supply you can get (you can often get at least a 90-day supply) and stockpile it. This also applies to regular over-the-counter medications and first aid supplies, so it’s a good idea to stockpile those too. This also applies to your pet’s prescriptions, as they are often made in the same facilities and using the same suppliers. One word of caution: be mindful of expiration dates. Having expired acetaminophen in your cupboards isn’t exactly a win.
-
Pet food. Speaking of your pets, it might be a good idea to stock up on their food. Pet foods will become more expensive, both because many use imported ingredients in their formulas and because tariffs on imported aluminum will erode the cost of canning it.
-
Basic food products. If you’re worried about food prices during a tariff storm (and you probably should be), it’s a good idea to stock up on pantry staples that last a long time. Things like rice, canned goods and beans can be stored for a long time, locking in current prices and protecting you from shortages . If you can can or stuff fruits or tomatoes, they can be added to your list. And if you eat a lot of tilapia (most of which we import from China), stocking up on frozen fillets will help keep your seafood night going.
-
Coffee and chocolate. As many have noted, the only place in the US that produces coffee at all is Hawaii, where less than 1% of the coffee we drink is produced. Thus, building an emergency supply of coffee for yourself will come in handy when getting a cup of coffee requires a credit check. Likewise, the domestic chocolate production isn’t all that great, so if you have a sweet tooth, it’s a good idea to buy a few bars now.
-
Batteries. Most of the raw materials used to produce most types of batteries are currently imported, and China is a major supplier in this market. Expect batteries – even the disposable ones you buy at the supermarket – to become more expensive and harder to find. They last a long time, so it makes sense to stock up on them.
-
Underwear. What you may not know is that the US imports a huge portion of its lingerie from places like Vietnam, with women’s lingerie worth $2.21 billion last year alone . If you need to brush up on your knowledge in this department, it would be a good idea to go lingerie shopping now.
-
Toothpaste, soap and detergent. If you’re committed to staying within the standards of acceptable care, you ‘ll end up spending a lot more on these items in the near future. The good news is that toothpaste can last for years in a tube, and soap and detergents have a virtually infinite shelf life, so buying in bulk now can protect you from rising prices for years to come.
-
Glasses and contact lenses. If you think you’ll need new glasses soon or need a regular supply of disposable contact lenses, now is the time to invest in new frames or stock up on contact lenses. China is the largest supplier of frames and the plastic used to make eyeglass lenses, so tariffs – even if they are reduced after trade negotiations – will increase those prices.
-
Spices. The US now imports almost all the spices you use in your recipes, as most spices require a tropical or subtropical climate to grow. Everything from vanilla to oregano will be subject to import tariffs, so stocking up is a good idea.
Don’t worry about hoarding these items
Because the rates are so comprehensive, you can stock up on many things without much risk, as long as you’re aware of spoilage and how much you actually use a particular product. But there are a few things that don’t make sense to hoard:
-
Toilet paper. If you’re haunted by pandemic memories of searching for toilet paper , relax: This shortage was largely caused by the sudden shift from office bathrooms to home bathrooms, coupled with panic buying. Most of our toilet paper is produced domestically, although most brands import some wood pulp to make it, so you may notice some price increases. But you most likely won’t see any shortcomings.
-
Cloth. Unless you typically buy several years’ worth of clothes at a time, stocking up on trousers and jackets doesn’t make sense, despite the almost certain rise in prices. If you’re already planning on replacing/updating parts of your wardrobe, it’s best to go shopping early, but buying extra clothes in bulk won’t pay off.
-
Electronics. Likewise, prices will rise on almost anything with a power cord, but you probably don’t need to stock up on gadgets. The money you may save will be offset by the fact that these gadgets will likely be outdated and possibly obsolete by the time you need to replace the ones you have.