Buying Before Tariffs?

With President-elect Donald Trump likely to impose additional tariffs on imported goods in 2025, CNN’s Elisabeth Buchwald asks what goods it may be worth buying now, before tariffs—and likely price increases—kick in.

The common theme of the goods Buchwald discusses is that they are all electronic. E-bikes and video game consoles are largely imported from China. Smartphones, laptops, and tablets are mostly manufactured abroad, and if Trump applies new tariffs to Mexico, prices could rise further, as Mexico manufactures a large amount of electronics. Major household appliances could also see price increases, as occurred in 2018 after a tariff on imported washing machines was imposed.

Monica Torres also explores the idea of buying a new car before any new tariffs can be imposed. Given that even cars assembled in the United States heavily rely on imported components, increased tariffs on parts from Mexico, Canada, or China could have significant price repercussions.

Still, as Buchwald observes, the extent, scale, and carveouts of any new tariffs by a Trump administration is uncertain. It may not be wise to take drastic action based on hypotheticals. But both Buchwald and Torres cite experts suggesting that in some cases it’s reasonable for consumers to take into account the potential of tariffs to increase prices. In particular, for individuals who believe their washing machine is on its last legs, or believe that they will want to buy a new car within the next year, it may make sense to slightly speed up the timeline, and to eliminate the tariff risk by buying now.

JMS Capital Group Wealth Services LLC

417 Thorn Street, Suite 300 | Sewickley, PA | 15143 | 412‐415‐1177 | jmscapitalgroup.com

An SEC‐registered investment advisor.

This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument or investment strategy. This material has been prepared for informational purposes only, and is not intended to be or interpreted as a recommendation. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice.