With tariffs rising, here's what you can do now to prepare
President Donald Trump announced a new round of tariffs this week, prompting further concern among consumers, who are now bracing for higher prices on everyday goods.
With inflation still a top concern, the question some may be asking is, "How soon will this hit my wallet?"
It turns out it isn't one size fits all, according to ABC News consumer correspondent Becky Worley.
Worley spoke to economists about how your budget could be affected by the new tariffs.
Here's what they expect to happen and ways that you can prepare.
Will retailers pass the cost of tariffs on to consumers?
According to the economists, retailers are facing three main choices with the tariffs: absorb the cost to stay competitive, split the difference with consumers or pass on the full tariff price hike to customers.
In sectors with thin margins, such as food and electronics, many retailers may have no choice but to raise prices.
When will those price hikes start?
Timing will vary by product and by how much inventory retailers already have in stock, Worley said on "Good Morning America" Friday.
According to Leo Feler, chief economist at Numerator, one of the economists who spoke with Worley, this is a timeline shoppers might encounter:
- Within one month: Fresh food prices, especially produce, may rise.
- Within three months: Packaged foods and alcohol will likely follow.
- Within six months: Clothing, appliances and cars that may hold steady for a while may see increases once retailers' supplies run out.
In the past, tariffs have triggered price hikes even on non-tariffed goods.
For small businesses, especially restaurants, the pressure is already mounting. Simon Bryant, owner of Eats in San Francisco's Richmond District, told ABC San Francisco station KGO that rising food costs have been tough to manage, and new tariffs could make things even harder.
"This is also coming right on the heels of the bird flu and egg crisis," Bryant noted.
What should you buy before the tariffs?
Don't panic, but do plan, said Worley.
Now's the time to think about any big-ticket items you may need in the next 12 to 18 months.
That includes TVs, cars, appliances, outdoor furniture and electronics such as laptops, phones and monitors.
Memorial Day sales -- which are just weeks away, and are typically a time when outdoor furniture, grills, TVs and tech are top sellers -- could also be a sweet spot before prices climb, but according to the economists, you may want to buy now.
If you were already budgeting for back-to-school season, you may also want to shop earlier this year.
Some brands, such as Ford, have already announced "tariff sales" given the uneasiness, such as Ford's recently announced From America, For America plan, which offers employee pricing, typically reserved for its workers, to all U.S. customers until June 2.
Appliance and electronics chain PC Richard & Son is also running a Beat the Tariffs promo through April 20, offering up to $1,000 off select kitchen appliances, TVs, mattresses and more, giving shoppers another chance to save big before price hikes take effect.
