As the inauguration of President-elect Donald Trump approaches, many Americans are taking preemptive action to prepare for potential price hikes resulting from his proposed tariff policies. This surge in stockpiling behavior is reminiscent of the early days of the COVID-19 pandemic, but with a different underlying cause.
Consumers across the United States are rushing to stock up on a wide range of products, fearing significant price increases due to Trump’s proposed tariffs. Some individuals, like Herschel Wilson from Tacoma, Washington, have been building their stockpiles since August, focusing on essential items such as Canned goods, bottled water, and toilet paper.
Wilson estimates he has spent around $300 on these supplies since the election and plans to allocate an additional $100 per month moving forward.
Household appliances, electronics, clothing, and other everyday items are expected to increase.
Some consumers are accelerating planned major purchases to avoid potential price hikes. For example, Kristen Hull, a 38-year-old accountant, bought a new car six months earlier than planned while others are considering purchasing laptops and winter clothing ahead of schedule.
Consumers are also stockpiling more specialized items such as skincare and hair products, frozen fruits and vegetables, coffee and tea, and hygiene supplies like sanitizer and masks.
The Tax Policy Center estimates that a 20% worldwide tariff combined with a 60% tariff on Chinese goods would lower average after-tax incomes by 2.9%, or nearly $3,000 per household in 2025.
Small business owners are also taking steps to mitigate the impact of potential tariffs. Beatrice Barba, owner of a plastic-free cup company, is considering purchasing a year’s worth of inventory, estimated at $200,000. And Javon Ford, a chemist in Los Angeles, is planning to stock up on color pigments for cosmetics.
Larger companies are implementing strategies to prepare for potential tariffs. Get this, Stanley Black & Decker is increasing inventory levels to minimize price hikes on goods. U.S. manufacturers, particularly in the consumer goods sector, have ramped up safety stock levels. Some companies are even expediting shipments from countries likely to incur higher costs while, at the same time, considering relocating production facilities.
The fear of tariffs is already affecting the economy. North American manufacturers have increased production, shrinking the level of spare capacity in global supply chains. The GEP Global Supply Chain Volatility Index rose to -0.20 in November from -0.39 the previous month.
While many are stockpiling, some experts advise caution. Scott Lincicome from the Cato Institute warns against stockpiling, noting that it could lead to inflated prices and empty shelves.
Is his bark bigger than his bite? Some analysts doubt that Trump will enforce all the promised tariffs, suggesting he might use them as leverage in negotiations.
While proponents argue that tariffs could protect certain U.S. industries and jobs, the overall consensus among economists is that American consumers would bear the brunt of these trade policies through higher prices and reduced purchasing power.
“My partner is laying in supplies and materials for a new roof we had planned for the spring,” West Virginia resident Jen Thomas told the outlet.
“While the rush of a second Trump presidency is still exciting for many West Virginians, my partner and I are neither excited nor optimistic about the next four years.”
As Americans prepare for potential economic changes under the incoming Trump administration, the surge in stockpiling reflects widespread concern about future price increases. While some view this as a necessary precaution, others warn of potential negative consequences if stockpiling becomes too widespread. As the situation evolves, both consumers and businesses will continue to adapt their strategies in response to the uncertain economic landscape.