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By Andrew Stanton
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Americans considering making big-ticket purchases may consider doing so before President Donald Trump's tariffs go into effect later this month.
Why It Matters
Economists warn that Trump's latest round of tariffs on imports from dozens of countries will make goods more expensive for American consumers.
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Trump has argued that the tariffs are necessary to restore U.S. manufacturing and erase the trade deficit with other countries, but the market reacted negatively to his announcement. The Dow Jones Industrial Average dropped nearly 4 percent on Thursday as investors face growing uncertainty about the future of the U.S. economy.
What To Know
Bankrate senior analyst and Washington Bureau Chief Mark Hamrick told Newsweek whether to jump at the opportunity to make purchases should depend on the necessity of the purchase and the "overall financial health" of an individual or household.
"I'm generally not a fan of leaning into consumption when most households live paycheck to paycheck," Hamrick said. "For those who are largely accomplishing their financial goals, have adequate emergency savings and are paying down debt, it is worth considering. For those who are struggling right now, they should strongly consider delaying such purchases and opt instead to save more, pay down debt."
Here are some items that are likely to increase in price and may warrant consideration for individuals already in the market:
Smartphones
Smartphones like the iPhone or Samsung Galaxy are primarily produced in Asian countries. The iPhone, for instance, is largely manufactured in China, which Trump hit with a 54 percent tariff. Some manufacturing for the product has been moved to India, which will still face 26 percent tariffs.
Rosenblatt Securities analysts predicted this could result in iPhone prices rising from $599 to $856, according to Forbes. For the iPhone 16 Pro Plus, prices could jump to $2,300 from $1,599.
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TVs and Laptops
Smartphones aren't the only tech product that the tariffs will likely impact. Laptops and televisions could also go up in price. Apple products, like MacBooks, are produced in China. Companies like Dell and Asus produce their products outside the United States, meaning they will likely be subject to new tariffs.
Popular TV brands are also made abroad. Sony, for instance, has produced TVs in Mexico, while LG is based out of South Korea.
Clothing and Shoes
Stores like Walmart, Old Navy and Target largely rely on foreign-made apparel from countries like China and Vietnam, meaning the affordable clothes Americans frequently purchase could become more expensive once tariffs are in effect.
Shoe companies could also see their stocks take a hit as they rely on goods made abroad for the U.S. market. Nike, for instance, saw its stock drop more than 8 percent on Thursday, though it did rebound some on Friday.
Air Fryers and Other Small Appliances
Many kitchen appliances are either entirely manufactured or rely on parts made in countries targeted by tariffs.
SharkNinja CEO Mark Barrocas told Bloomberg earlier this year that the company plans to move its supply chain out of China in response to the tariffs, but not into the U.S.
"The product is not made here. The components are not made here. This is not like the car industry that you could say, 'Well, let's flex it back to the United States.' That is not something that we believe is on the horizon," Barrocas said.
Refrigerators
Like small appliances, refrigerators from brands like Samsung are primarily produced outside the U.S. However, companies like Whirlpool or GE are built in the U.S. and may see smaller price hikes, though they may use some parts sourced from other countries.
Engagement Rings
Americans thinking about a proposal on the horizon may consider purchasing a ring before tariffs go into effect. According to The Wall Street Journal, the U.S. imports 92 percent of its synthetic diamond supply from India
Furniture
Many furniture companies may also see prices increase in response to tariffs. Ikea, a favorite for many Americans, is based in Sweden.
Jesper Brodin, CEO of IKEA's biggest franchisee, Ingka Group, told Reuters earlier this year that company prices will likely rise due to tariffs.
"We, and I think probably all international companies thrive from harmonized tariffs, if you like, and actually, the fewer the better, because at the end of the day there is a risk in any country with tariffs that you need to, as a company, pass it on to the customers," Brodin said.
Toys
It may be time to start Christmas shopping earlier, as toys are also expected to rise in price. Many toys are manufactured in China, so they'll be subject to a particularly steep tariff.
The 20 percent European Union tariff will affect the Danish company Lego, a popular toy brand with factories in China.
Coffee
Very little coffee is produced in the U.S., as the environment is not suitable for its cultivation. Top suppliers like Brazil and Colombia will face 10 percent tariffs.
Video Games
Many video games and consoles are also produced abroad, and this industry is already reacting to the tariffs. Nintendo announced Friday that U.S. preorders for the Nintendo Switch 2 would be paused as it reassesses conditions after the tariffs.
What People Are Saying
Isabel Barrow, executive director of financial planning at Edelman Financial Engines, told Newsweek: "For many 'consumer discretionary' items, there have not yet been recent price increases due to tariffs. If you have been saving for a big-ticket item, and the price seems reasonable given the typical cost of this item, there is no reason to wait.
"If, on the other hand, the item you are considering has increased in price significantly, and these price increase may be related to shorter term influences, maybe that is something you wait on. A new car would be an example of something that may be more expensive today, and you may want to wait on that unless it's a necessity."
WalletHub writer and analyst Chip Lupo told Newsweek: "If you're in the market for a big-ticket item such as a car or home appliance, unless you need a replacement immediately, it's better to wait and see what those price increases will look like. In the meantime, do your research to give you a better idea on what effect tariffs will have on those items.
"The emphasis should always be on saving money. For starters, take the time to review your household budget to see if there are areas where you can make cuts. Check your bank and credit card statements for any unnecessary subscription services and avoid impulse or "panic" buying, especially if you're strapped for cash."
Kelli Smith, director of financial planning at Edelman Financial Engines, told Newsweek: "I often tell clients that the best way to prepare for an economic event is to get out in front of it. People should have a good understanding of their financial picture in good and bad times because that helps us identify if and when changes need to be made.
"One of the most important aspects of financial planning that is often overlooked or undervalued is clarity around expenses and spending. When we regularly reflect on how we spend, it gives us the opportunity to prioritize where we put each dollar. This is especially important when we experience events outside of our control, such as tariffs, because managing spending is one of the quickest ways we can address short-term uncertainty."
What Happens Next
The 10 percent "baseline" tariffs will take effect on April 5, and the reciprocal tariffs will kick in on April 9.
A Budget Lab analysis found that Americans could pay up to $4,200 more per year due to the tariffs, but if they are not changed, the full effect will be felt over the coming weeks and months.
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