5 things to consider buying before new tariffs take effect

New York CNN —

While there’s a lot we don’t know about President-elect Donald Trump’s tariff plans, at least one thing is pretty certain: Tariffs will go up. If history is any indication, that means price increases will likely follow.

Already, Trump announced he will slap a new 25% across-the-board tariff on imports from Mexico and Canada as well as an additional 10% tariff on Chinese imports the very day he’s inaugurated.

And on the campaign trail, he pledged to levy a 60% tariff on all goods imported from China and a 10% to 20% tariff on goods coming from all other nations.

Such tariffs have the potential to significantly increase the prices consumers pay on nearly everything that isn’t made entirely in the US, of which there are very few goods.

So you may be wondering, especially with all the Black Friday and Cyber Monday deals taking place, are there any purchases you can make now to save money down the road?

The answer is yes — with caveats.

What are tariffs?

Tariffs are a tax on imports. Governments often impose them to protect national security, bolster domestic businesses and raise revenue.

But they can be expensive for consumers, as businesses often pass along higher costs.

In total, the typical middle-income US household could be stuck shelling out more than $2,600 extra a year if a blanket 20% tariff on all imports and a 60% tariff on imports from China are imposed, according to research from the Peterson Institute for International Economics.

Take, for instance, avocados. In 2022, 90% of the avocados Americans consumed were imported. Of the avocados imported into the US, 89% came from Mexico. So if Trump imposes a 25% tariff on Mexican imports, that guac and avocado toast you probably already think