Some US consumers in ‘survival mode’ as Trump tariffs arrive
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Economists predict that consumers and businesses will likely pay higher prices on electronics built outside the US.
PHOTO: EPA-EFE
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ARLINGTON, United States - American consumers braced themselves for pain even ahead of President Donald Trump’s hefty tariffs on imported products, which came into effect overnight on April 8 into April 9.
Some rushed out to buy the latest smartphones ahead of any price increases,
“I live in an apartment. You can’t stockpile,” a retired woman told AFP on April 8 as she loaded her groceries into her car at a Costco store on the outskirts of the US capital.
The woman, who requested anonymity, said she has begun cutting back on spending in recent weeks as a precaution.
“Things are going to keep going up, and we need the money to buy more food next week or the week after,” she said.
Despite pleas from top trading allies, the US has now entered the next major phase in Mr Trump’s tariff war, with huge and sweeping new import taxes targeting goods from many countries.
The new levies will affect electronics made in China, which will face a cumulative tariff of 104 per cent from April 9,
Vanilla from Madagascar (47 per cent), Japanese tea (24 per cent), Thai jasmine rice (36 per cent) and European wine (20 per cent) will also be affected.
‘Bad’
“Tariffs are bad,” said a man named Mr Charles, who declined to give his last name, pausing behind his loaded shopping cart in Virginia.
“I am a libertarian on tariffs, always have been,” he said on April 8, adding he plans to pick up a new Apple iPhone on April 9 in case prices rise.
Mr Keith Taylor, who also picked up a new iPhone a few days ago, told AFP he has no plans to buy any more electronic devices for the time being.
“That’ll be the last thing I purchase until all this gets settled out,” the 62-year-old said.
At a nearby clothing store belonging to the Japanese retailer Uniqlo, Ms Elisabeth Bradley, 40, said she considered herself lucky as she bought clothes for a trip to Denmark.
The chief executive and mother of two said she thinks she can cope with price rises, but has nevertheless changed her consumption habits ahead of the tariffs.
“We did just buy a car because of the tariffs,” she said, adding that her new electric Volvo will likely cost more money with Mr Trump’s tariffs in force.
“We just expect car prices to go up,” she said.
‘Trying to get by’
At another supermarket in New York, about a five-hour drive north of Washington, Ms Anastasia Nevin told AFP she is currently in “survival mode”.
“I have two kids, so I’m just trying to get by. It’s tough,” she said on April 8, adding she would likely need to cut back on spending if prices rise further.
American households have already been squeezed by high post-Covid inflation. And prices have not come down in the years since; they have just gone up more slowly as inflation has cooled.
Other consumers told AFP that they are less concerned about the prospect of a surge in the prices of everyday goods.
“I don’t believe I’m going to see prices of groceries going up that much,” a man named Mr Jean Brown told AFP. “Prices change over time. You just have to adjust your budget.” AFP
