Racing the tariff clock: What Americans are buying before April 9
Americans are hurrying to purchase necessities such as shoes, furniture, coffee, and cars out of concern for potential price increases with the impending tariffs under the administration of President Trump.
- Apr 5, 2025,
- Updated Apr 5, 2025 12:55 PM IST
In response to President Donald Trump's reciprocal tariffs, Americans are rushing to stock up on essential goods, from shoes to cars, before prices surge. This panic buying is sweeping across the nation, as shoppers aim to secure products at current prices. The new tariffs, designed to "level the playing field," according to Trump, are expected to raise input costs for businesses, squeezing profit margins and leading to higher consumer prices.
A significant spike in purchases is being observed in the automotive sector, as consumers prioritise cars, especially those assembled outside the United States, as per reports.
Electronics such as laptops, smartphones, and tablets are also in high demand. Many of these products contain components sourced from abroad, notably China, which are likely to see price increases due to the tariffs. Home appliances, including refrigerators and dishwashers, are similarly being bought in haste, as retailers warn of looming price hikes.
Consumers are also focusing on children's products like diapers and toys, which are directly affected by the new trade measures. Building and renovation materials are seeing increased demand as homeowners and contractors purchase items such as lumber and tiles before the tariffs disrupt budgets.
Additionally, imported foods, including coffee and condiments are being snapped up, with urban markets and niche consumers particularly affected by anticipated cost rises.
The car market is experiencing heightened activity, especially for electric vehicles and imported cars, which face significant tariff impacts. Automakers and dealerships report increased interest as consumers strive to finalise deals pre-tariff. Similarly, furniture purchases have surged, with items like sofas and beds at risk of becoming more expensive due to reliance on imported materials.
Retailers of footwear and apparel also brace for higher costs, prompting consumers to buy jeans, sportswear, and shoes ahead of the price adjustments.
The rush extends to fitness and wellness equipment, including treadmills and massage chairs, with many products imported or containing foreign elements. Small kitchen appliances like blenders and toasters are also in high demand, as they are often either imported directly or comprise foreign parts, making them vulnerable to the tariff effects. Shoppers are eager to take advantage of current prices before tariffs impose a financial burden on these everyday essentials.
Markets hit
The recent tariff announcement resulted in a market downturn, with Wall Street experiencing significant losses for a second consecutive day on Friday. This led to the Nasdaq Composite entering a bear market and the Dow Jones Industrial Average entering a correction, as the escalating trade tensions globally caused the largest drop since the start of the pandemic.
Over the span of Thursday and Friday, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite saw their largest two-day declines since the initial outbreak of the coronavirus during President Donald Trump's first term. During this period, the Dow experienced a 9.3% decrease, the S&P 500 dropped by 10.5%, and the Nasdaq tumbled by 11.4%.
The imposition of extensive tariffs by President Trump has sparked concern about a potential worldwide economic downturn, leading to a significant decrease in the value of U.S. companies. The escalating unease among investors was reflected in the closure of the CBOE Volatility Index, also known as Wall Street's fear gauge, at its highest level since April 2020.
Following Trump's decision to raise tariff barriers to levels not seen in over a century, investors have been selling off stocks out of fear for the new economic landscape in the U.S. and potential retaliatory actions from trading partners. A record volume of shares was traded on Friday, exceeding the previous high set on January 27, 2021, with around 26.79 billion shares changing hands on U.S. exchanges.
In response to Trump's recent tariff announcement on Friday, international governments have begun taking action, causing further concern for investors regarding the potential for a global recession. JP Morgan has revised its forecast, now estimating a 60% likelihood of the global economy entering a recession by the end of the year, an increase from the previous estimate of 40%.
China's finance ministry has announced plans to implement an additional 34% tariff on all U.S. goods starting April 10. Furthermore, the prime ministers of Britain, Australia, and Italy have engaged in discussions on how best to address Trump's tariff measures.
Mariam Adams, managing director at UBS Wealth Management, commented on the situation, stating, "We find ourselves in the midst of a trade war akin to the Wild West."
In response to President Donald Trump's reciprocal tariffs, Americans are rushing to stock up on essential goods, from shoes to cars, before prices surge. This panic buying is sweeping across the nation, as shoppers aim to secure products at current prices. The new tariffs, designed to "level the playing field," according to Trump, are expected to raise input costs for businesses, squeezing profit margins and leading to higher consumer prices.
A significant spike in purchases is being observed in the automotive sector, as consumers prioritise cars, especially those assembled outside the United States, as per reports.
Electronics such as laptops, smartphones, and tablets are also in high demand. Many of these products contain components sourced from abroad, notably China, which are likely to see price increases due to the tariffs. Home appliances, including refrigerators and dishwashers, are similarly being bought in haste, as retailers warn of looming price hikes.
Consumers are also focusing on children's products like diapers and toys, which are directly affected by the new trade measures. Building and renovation materials are seeing increased demand as homeowners and contractors purchase items such as lumber and tiles before the tariffs disrupt budgets.
Additionally, imported foods, including coffee and condiments are being snapped up, with urban markets and niche consumers particularly affected by anticipated cost rises.
The car market is experiencing heightened activity, especially for electric vehicles and imported cars, which face significant tariff impacts. Automakers and dealerships report increased interest as consumers strive to finalise deals pre-tariff. Similarly, furniture purchases have surged, with items like sofas and beds at risk of becoming more expensive due to reliance on imported materials.
Retailers of footwear and apparel also brace for higher costs, prompting consumers to buy jeans, sportswear, and shoes ahead of the price adjustments.
The rush extends to fitness and wellness equipment, including treadmills and massage chairs, with many products imported or containing foreign elements. Small kitchen appliances like blenders and toasters are also in high demand, as they are often either imported directly or comprise foreign parts, making them vulnerable to the tariff effects. Shoppers are eager to take advantage of current prices before tariffs impose a financial burden on these everyday essentials.
Markets hit
The recent tariff announcement resulted in a market downturn, with Wall Street experiencing significant losses for a second consecutive day on Friday. This led to the Nasdaq Composite entering a bear market and the Dow Jones Industrial Average entering a correction, as the escalating trade tensions globally caused the largest drop since the start of the pandemic.
Over the span of Thursday and Friday, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite saw their largest two-day declines since the initial outbreak of the coronavirus during President Donald Trump's first term. During this period, the Dow experienced a 9.3% decrease, the S&P 500 dropped by 10.5%, and the Nasdaq tumbled by 11.4%.
The imposition of extensive tariffs by President Trump has sparked concern about a potential worldwide economic downturn, leading to a significant decrease in the value of U.S. companies. The escalating unease among investors was reflected in the closure of the CBOE Volatility Index, also known as Wall Street's fear gauge, at its highest level since April 2020.
Following Trump's decision to raise tariff barriers to levels not seen in over a century, investors have been selling off stocks out of fear for the new economic landscape in the U.S. and potential retaliatory actions from trading partners. A record volume of shares was traded on Friday, exceeding the previous high set on January 27, 2021, with around 26.79 billion shares changing hands on U.S. exchanges.
In response to Trump's recent tariff announcement on Friday, international governments have begun taking action, causing further concern for investors regarding the potential for a global recession. JP Morgan has revised its forecast, now estimating a 60% likelihood of the global economy entering a recession by the end of the year, an increase from the previous estimate of 40%.
China's finance ministry has announced plans to implement an additional 34% tariff on all U.S. goods starting April 10. Furthermore, the prime ministers of Britain, Australia, and Italy have engaged in discussions on how best to address Trump's tariff measures.
Mariam Adams, managing director at UBS Wealth Management, commented on the situation, stating, "We find ourselves in the midst of a trade war akin to the Wild West."