Americans rush to stock up as Trump’s tariffs threaten price hikes

WASHINGTON – Ms Mariana Ibarguren combed through the racks at Swedish retail giant H&M, her arms draped with beachwear and bargain T-shirts. “It hasn’t hit these prices yet, but it’s coming,” she said, eyeing the clothes behind her.

She was not alone. Around the Georgetown store, shoppers were stocking up – racing against the calendar to grab deals before new tariffs on China, first announced on April 2, ripple through the supply chain and drive up prices.

A wave of consumer anxiety is sweeping the country as Americans brace themselves for steep price hikes on everyday items. From Halloween costumes to bicycles, goods in the United States are about to get significantly more expensive, thanks to President Donald Trump’s latest trade crackdown. His salvos include a sweeping 145 per cent tariff on many Chinese imports, and they are already reshaping how families shop and how small businesses prepare for the months ahead.

Retail giants Shein and Temu have warned customers that they will both raise prices starting on April 25 because of “recent changes in global trade rules and tariffs”. The announcements have triggered a wave of panic buying and what economists call “precautionary behaviour” – spending now to avoid sticker shock later.

“We won’t be able to enjoy our shopping sprees any more,” said 14-year-old Guadalupe Hernandez, who had placed a last-minute jewellery order at Shein. “I’m not (wild) about these tariffs. It sucks to have to pay a ton of money because of a trade war.”

The anxiety is now showing up in hard numbers. Consumer sentiment plunged in mid-April to its second-lowest level in the history of a University of Michigan survey that dates back to 1952, while inflation expectations just surged to the highest level since the early 1980s.

The Tax Foundation, an independent think-tank in Washington, DC, estimates the tariffs will cost Americans US$3.1 trillion (S$4 trillion) over the next decade, amounting to a US$2,100 hit per household in 2025 alone.

To prepare, Americans are shopping. ​US retail sales surged in March 2025, marking the largest monthly increase in over two years, as consumers accelerated purchases of motor vehicles and other goods to avoid anticipated price hikes from impending tariffs.

On social media, shoppers are venting – and organising. “Shein fans, don’t just complain about the tariffs, do something!” one Reddit user posted, sharing a pre-formatted letter to Congress urging lawmakers to reverse the policy. “This makes inflation post-Covid seem quaint,” the letter reads. “President Trump’s tariff policy is an unforced error and needs to be removed. I expect Congress to take back control of tariff policies and Make America Affordable Again.”

Small business owners are also feeling the pressure. At Bradley Party & Variety, a small shop in Maryland, manager Angela Toleque is fielding pressure from vendors to stock up on merchandise she does not have room to store.

“Ninety-nine per cent of our products are made overseas,” she said. “We’re trying not to raise prices, but it will be challenging. So many party stores are going out of business. We’re the last ones standing.”

Halloween is their biggest season, and most of those costumes are still in shipping containers in China. By the time they arrive in August, the surcharges will be hefty, Ms Toleque fears.

At Terrapin Bicycles just outside Washington, owner Kevin Scott is watching prices climb in real time. One electric bike brand hiked prices by US$1,400 overnight on April 10, the day a 35 per cent tariff on Chinese goods kicked in. Another supplier raised prices 8 per cent across the board. Since then, the tariffs have only escalated. 

As a business owner, planning amid the uncertainty of the tariffs has been draining, he said. Although he diversified his products from China in anticipation of a trade war before the election, many of them still rely on China for raw materials. He worries the costs will be passed on to his customers one way or another. “It’s terrible and chaotic,” Mr Scott said. “There’s no such thing as an informed decision.”

Even everyday shoppers are trying to stay ahead of the changes, but shifting tariffs have left many unsure of what is coming next. Mr Adam Sidel, 53, was headed to a store to buy coffee in bulk. “You come into the market completely paralysed,” he said. “You just don’t know if you’re getting a good price any more, but I don’t want to have to pay double in a few days.”

The tariffs are already throttling global trade, with fewer goods shipping from China, where about 30 per cent of US containerised imports originate. These have plunged as much as 60 per cent, according to data from maritime research firm Sea-Intelligence.

Over 75 per cent of toys sold in the US come from China, and categories once spared – like tricycles, dolls, and puzzles – are suddenly getting slapped with fees that exceed the price of the items themselves. Economists say the tariffs will likely increase prices across industries.

“The economy has all these deep interconnections. If I have tariffs on goods and raise prices in one sector, it’s going to raise them everywhere because of the way that commodities are linked,” said economist Steven Neil Durlauf of the University of Chicago. He expects textiles, toys, and electronics to take the biggest hit.

In addition to the tariffs on Chinese goods, Mr Trump has also levied 10 per cent tariffs on most other countries, while pausing the higher amounts he had initially set. China has hit back with a 125 per cent tariff on US goods.

Some retailers are trying to pivot. Mr Alex Clarke, owner of Yang Market, a grocery store in Washington, is braced for higher prices and thinner margins. But he supports the tariffs.

“Trump is moving so rapidly that things haven’t levelled out yet,” he said. “We aren’t stockpiling. We decided that buying local is better. Products used to not come from more than 100 miles away. We need to get back to that.”

That might mean ditching his Austrian sparkling wine for a California brand – and convincing customers to trade tortillas for locally made pita bread. “Taco Tuesday may not happen as much, or if it does, it’ll be a luxury,” he said. “We will need to make changes to our diets.”

At H&M, Ms Ibarguren, 45, said she is simply trying to get ahead of the inevitable.

“Whatever plans Trump has, we are going to be the ones who have to pay for this trade war,” she said. “If prices increase, we’ll think twice before buying. We’ll just consume less.”

That shift – from everyday indulgence to cautious budgeting – is now playing out nationwide. For many Americans, the economy feels more uncertain than it has in years. And the latest blow is not from Wall Street or global energy markets, but from a trade war reshaping how Americans shop.

“We’ll have to learn to live with less,” Ms Ibarguren said.