My spouse and I despise our current washer and dryer. While they still function, the washer consistently leaves behind small traces of mildew after each load, and the dryer requires three cycles on high heat to fully dry a load of laundry.
With all the talk of trade wars, we are considering taking advantage of any potential deals before the situation worsens.
The latest Consumer Confidence Index from the Consumer Confidence Board indicates that many individuals are concerned about tariffs. While appliance purchasing plans saw a slight increase in June, car-buying plans remained steady, and electronic-buying plans decreased.
It appears that the more affluent consumers may be at the forefront of this trend. In May, 26% of individuals earning $125,000 or more reported making purchases in anticipation of potential tariffs. Economists predict that price hikes are on the horizon.
According to National Retail Federation Chief Economist Jack Kleinhenz, consumers are navigating through the uncertainty surrounding trade policies. However, he foresees that the inflation associated with tariffs will become more noticeable later this year.
To stay ahead of potential price increases, here are a few areas to consider before costs escalate further.
Major appliances, such as washers and refrigerators
Recent tariffs on imported steel and aluminum are expected to impact household appliances. As of June 23, a 50% tariff on steel now includes “steel derivative products,” encompassing fridges, freezers, washers, dryers, dishwashers, ovens, and garbage disposals.
If you’ve been contemplating upgrading your appliances, now might be the ideal time to invest in a new one before prices rise. Take advantage of summer sales while they last.
In our case, we have decided to purchase a new washer and dryer soon due to the mildew issue and the anticipated price hikes. Luckily, our local appliance store has the LG set we desire in stock and currently on sale.
Cars (especially EVs and luxury imports)
The past few years have not been favorable for car buyers, with prices of both new and used vehicles skyrocketing. However, there seems to be some relief on the horizon.
For instance, I managed to purchase a brand new Honda Odyssey below the sticker price last November, which was a pleasant surprise. With a looming 25% tariff on imported passenger vehicles and auto parts, it’s wise to act sooner rather than later.
According to BW’s auto expert Shannon Bradley, experts anticipate that tariffs will lead to higher car prices. While there have been minimal price hikes so far, the landscape is expected to change as pre-tariff vehicles become scarce.
If you’re eyeing a specific make and model, especially if it’s a U.S.-assembled vehicle like the Toyota Camry Hybrid, Ford Explorer, or Honda Odyssey, you may experience less impact from tariffs compared to luxury foreign-made models. Prices of these cars are projected to rise by $2,000 to $3,000.
Additionally, President Trump’s car loan interest tax deduction may provide some financial relief for individuals purchasing new cars assembled in the U.S. after Dec. 31, 2024.
On the other hand, if you have your sights set on a luxury imported vehicle like a Mercedes-Benz G-Wagon or Land Rover, be prepared for potentially higher tariff impacts. The Anderson Economic Group estimates price hikes ranging from $10,000 to $12,000 for such models.
For those interested in electric vehicles, time is of the essence. EV tax credits are scheduled to end for EVs purchased or leased after Sept. 30, 2025. Consider purchasing an EV before this deadline to take advantage of the current $7,500 tax credit.
The Tesla Model 3 and Ford F-150 Lightning are examples of EV models eligible for the tax credit. Used EVs also qualify for a $4,000 tax credit until the planned tax changes take effect on Sept. 30.
iPhones and Androids
The situation regarding tariffs is subject to frequent changes. Currently, there is a 10% baseline tariff on all imports, with a 30% tariff on Chinese imports in place. Higher reciprocal tariffs on China and other countries are temporarily on hold until Aug. 1.
It’s worth noting that smartphones, along with 19 other electronic items, are currently exempt from tariffs. This exemption may influence your decision to upgrade your phone sooner rather than later.
Imported alcohol
If the thought of increased costs on luxury cars is unsettling, you may want to consider stocking up on imported alcohol like Scotch, South African wine, and sake before potential tariffs come into effect. Tariffs of 50% for the European Union, 30% for South Africa, and 25% for Japan are currently under discussion.
Enjoy your expensive drinks wisely and in moderation.
Advice: Don’t let tariffs overwhelm you
Above all, avoid making impulsive purchases due to tariff concerns. It’s essential to assess your financial situation and determine if making a significant purchase aligns with your budget. Consider saving and preparing for potential price hikes instead of rushing into unnecessary expenses.
Taking a prudent approach now may save you money and help you navigate the changing economic landscape with confidence.