President Donald Trump announced a new round of tariffs Wednesday, 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.
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.
Timing will vary by product and by how much inventory retailers already have in stock, Worley said on ABC’s Good Morning America Friday.
According to Leo Feler, chief economist at Numerator, 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.
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.
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.