What to put on your holiday gift list before tariffs make them more expensive next year

During the busy holiday shopping season, concerns arise about potential price increases on imported goods. With only months to go before President-elect Donald Trump returns to the White House, his proposed steep tariffs on imports have consumers contemplating early purchases. Tariffs will likely rise, possibly leading to price hikes for many goods.

Trump plans to impose a 25% tariff on imports from Mexico and Canada and an additional 10% on Chinese imports. Previously, he spoke of a 60% tariff on Chinese goods and a 10% to 20% tariff on goods from other countries. This uncertainty spurs some consumers to consider stockpiling imports, but pitfalls exist, such as perishability and the adverse effects of consumer-driven shortages.

Smartphones, notably iPhones, popular holiday items, are mostly manufactured abroad. China accounts for 78% of these imports. Shifting production could result in higher prices, as a 10% general tariff and a 60% tariff on Chinese goods would increase prices by 26% to $213.

Household appliances could see a 19.4% price increase with a 10% general import tariff and a 60% tariff on Chinese goods. A new $40 toaster might cost about $48, and similar increases affect hair dryers, vacuums, and washing machines. The sentiment echoes past tariff impacts, emphasizing preemptive buying.

Gaming consoles face nearly a 40% price hike with proposed tariffs, as China supplies 87% of US imports. Few alternatives for production exist, thus bolstering expenses. Computers may follow suit, with a 30% increase in price for monitors and a 45% surge for laptops and tablets, raising costs by $357 for laptops and $201 for tablets.

Footwear prices could go up by at least 18% due to potential shifts in manufacturing countries to dodge tariffs. A running shoe priced at $90 might increase to $106. Toys also stand to be affected, with prices potentially rising by 36% if tariffs on Chinese goods are implemented. With over 77% of toy imports from China, broad-based tariffs could substantially elevate prices.

This looming increase in import tariffs encourages consumers to consider making purchases before prices surge.