"More Expensive Next Year Due to Tariff Bomb"… Panic Buying Surge of Essentials and Electronics in the US

WSJ Points Out "Panic Buying Could Fuel Inflation"

Some consumers in the United States are stockpiling daily necessities and replacing cars and electronic products because they believe that product prices will rise next year due to tariffs if Donald Trump, the President-elect of the United States, is re-elected.

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On the 14th (local time), The Wall Street Journal (WSJ) reported that consumers who are sensitive to tariff increases are stocking up on goods and increasing consumption in preparation for potential price hikes. Gerard Szarek (66) told WSJ, "I am piling up as much coffee beans, olive oil, and toilet paper as possible in the basement." He also added that he upgraded his car and home appliances to new models out of concern that they might break down within the next four years. Living in Cape Cod, Massachusetts, he mentioned the Trump administration's tariff plans as the reason for stockpiling goods and expressed worries that the large-scale deportation of illegal immigrants could raise labor costs, which might lead to higher product prices.

In particular, according to a monthly consumer survey by the University of Michigan, one in four Americans who participated in the survey expects prices to rise next year and said that now is a good time for large-scale consumption. A month ago, only 10% of participants gave the same answer.

Previously, President-elect Trump pledged to impose tariffs of 10-20% on all imports and 60% on Chinese products. He explained that this was to boost American manufacturing and reduce the trade deficit. After the election, he announced a 25% tariff on imports from Canada and Mexico, and a "100% tariff" on the BRICS (Brazil, Russia, India, China, South Africa), a coalition of emerging non-Western economies.

However, WSJ cited economic experts who pointed out that while tariffs may help foster manufacturing, they are likely to cause price increases. They also noted that increasing consumption out of concern for inflation could ironically trigger further inflation. WSJ reported that the rise in the U.S. Consumer Price Index (CPI) in November, which increased by 2.7% compared to the previous year, partly stemmed from some shoppers increasing durable goods purchases after President-elect Trump threatened to impose tariffs on imports from Canada, Mexico, China, and others.