Preparing for Price Hikes: Essential Items to Stockpile Before Tariffs Take Effect
In the midst of tariff chaos, it's natural to feel lost about what lies ahead. One constant, though, is that we're all set for higher prices and potential shortages. So, don't beat yourself up if you can't predict the future – we're all in the same boat!
That said, there's a fine line between being prepared and going overboard. Here are some items it might make sense to stockpile while you still can:
Essential Buys
Kiddie's Playthings
Ever wondered who manufactures most of the toys lurking in your kid's playroom? Yep, you guessed it – around 80% of them are made in China [1]. If you’ve got children and plans for upcoming birthdays, holidays, or other special occasions, it may be a smart move to get your hands on toys promptly.
Prescriptions and Over-the-counter Meds
Many prescription drugs already rely on delicate, narrow global supply chains [2]. Unfortunately, trade disruptions are bound to make everyday pharmaceuticals both tougher to come by and pricier. To safeguard yourself, take this opportunity to find out how much of a supply you can secure (often up to a 90-day supply) and stock up, especially for common over-the-counter meds and first-aid supplies. Don’t forget about Fido or Fluffy – their prescriptions are likely made in the same factories [2]. Keep an eye on expiration dates, though; making your stockpile a graveyard for expired meds isn't going to help!
Pet Food and Tools
Pet food [2] and batteries [3] are other items to consider stocking up on. With pet food, prices will likely skyrocket simply because factories import much of the raw ingredients, and tariffs on imported aluminum will make canning way more expensive. As for batteries, China is a major supplier for these too, so both prices and availability could suffer.
Long-lasting Food Staples
Grocery prices are bound to follow the tariff storm, so prepping a stash of long-lasting staples such as rice, canned goods, and beans can make a difference. These items can be stored for a long time, freezing current prices and protecting you from potential shortages.
Indulgent Treats
Mornings without coffee [2] or evenings without chocolate could be a harsh reality if you limit your potential suppliers to stateside manufacturers. So, it’s a good idea to treat yourself to a surplus of these goodies.
Things to Keep on the Shelf
Toilet Paper
Toilet paper shortages during the pandemic were largely caused by a sudden shift from office bathrooms to at-home use, combined with panic buying. Most TP is still made domestically, though some brands do import wood pulp [3]. So while prices may increase, it's unlikely you'll experience shortages.
Clothes
Buy what you need according to your usual schedule, but refrain from hoarding clothes like pants, jackets, or jeans. Yes, prices will probably rise, but the cost of buying excess inventory now might not make up for the fact that those clothes are likely to be out of style before you actually need them.
Electronics
The money you could save on gadgets by stockpiling them will probably be offset by the fact that those gadgets will likely be out of date and possibly obsolete by the time you need new ones. So, better to skip the stockpiling on electronics for now. That said, if you're due for a replacement or refresh of your devices soon, consider snagging them before prices climb higher.
[1] https://www.cnbc.com/2019/06/13/trump-tariffs-html-import-tariffs-and-washington-trade-deals-explained.html[2] https://www.cnn.com/2018/03/22/politics/tariffs-us-imports-prices-shortages/index.html[3] https://www.reuters.com/article/us-usa-trade-farm-tariffs-insights/from-pork-to-pumpkins-a-guide-to-how-u-s-tariffs-are-hitting-farms-idUSKBN1HC3KR[4] https://www.creditdonkey.com/tariff-inflation.html[5] https://www.nytimes.com/2018/09/17/business/us-tariffs-cpi-economy.html
- In the face of potential tariff-induced shortages and price hikes, it's essential to consider money management in lifestyle adjustments, as some items like toys, prescriptions, pet food, long-lasting food staples, and indulgent treats might become more expensive.
- While it's crucial to prepare financially for tariff impacts, overindulgence in stockpiling may not be beneficial for certain items like clothes and electronics, as prices may rise but the cost of excess inventory now might not compensate for the risk of obsolescence before actual need.
