Gizmo_Duck
blathering blatherskite!
U.S. consumers rush to buy big-ticket items before Trump’s tariffs kick in
Economists say the tariffs are expected to increase prices for everyday items, warning of potentially weakened U.S. economic growth.
www.ctvnews.ca
John Gutierrez had been thinking about buying a new laptop for the past year. The Austin, Texas, resident needed a computer with faster processing and increased storage for his photography work and had his sights set on a product from a Taiwanese brand.
Then U.S. President Donald Trump announced expansive new import tariffs Wednesday, including a 32 per cent tax on imports from Taiwan. That same day, Gutierrez ordered the laptop, with a base price of US$2,400, from a retailer in New York specializing in photo and video gear.
"I thought I'd bite the bullet, buy it now, and then that way I'll have the latest technology on my laptop and don't have to worry about the tariffs," he said.
Gutierrez was among the U.S. consumers rushing to buy big-ticket items before the tariffs take effect. Economists say the tariffs are expected to increase prices for everyday items, warning of potentially weakened U.S. economic growth.
The White House hopes the tariffs prod countries to open their economies to more American exports, leading to negotiations that could reduce tariffs, or that companies increase their production in the U.S. to avoid higher import taxes.
Rob Blackwell and his wife needed a new car that could handle long drives from Arlington, Virginia, to their son's college. Their current electric vehicle is older with a limited range, and it will soon be used by his daughter, who is on the verge of getting her driver's license.
"I have been telling my wife that for some time we were going to need to do it," he said, "and I was watching to see what the president did with tariffs."
Blackwell wanted another EV, but said leasing made more economic sense because the technology is ever-changing. He had his eye on the new General Motors Optiq; it's an American car but made in Mexico, which could be subject to tariffs on supply chains that might increase the cost.
After hearing that tariffs would be announced, they made plans the weekend before to lease the car. He said the dealership honored the agreement they worked out before the tariffs were finalized. And although he said the salespeople were a pleasure to deal with, Blackwell sensed a shift in their stance.
"They know what we know, which is suddenly it flips from a buyer's market to a seller's market very quickly," Blackwell said, adding that he is happy with his choice.
"It was just a simple rational decision," he said. "If this is what the government's going to do, I need to get my act together."
Lee Wochner, CEO of the Burbank, California-based Counterintuity marketing and strategy firm, also needed a new vehicle. He wanted a more presentable car for business meetings, but kept putting it off because of his busy work schedule.
On March 27, a Thursday, he told his firm's car broker: "Ed, I need a car pronto and it's got to happen by Sunday."
The broker gave him some car and pricing options and he leased an Audi Q3, which was delivered Sunday to his house by a nearby dealership.
A quick back-of-the-envelope calculation showed how much he saved by leasing before the tariffs were implemented. If he had waited, Wochner said, it would have cost about another $4,300.
"One of the things my car broker said was that deals that were already written, some of the dealerships were ripping them up already and renegotiating them because they were afraid that they weren't going to be able to get enough new inventory at a price anybody would buy," he said.
He believes prices will continue to increase because the U.S. has lost the trust of the international trade market.
Upgraded my daughter's pc with the best stuff I could find to ride out this potential depression, as well as just copped her a nicer drawing tablet today. Figure that not only will prices be crazy for the foreseeable future, but the job market is going to be basically non-existant when she graduates hs next year, so she may as well be comfortable and have some outlets if she's going to be sitting around at home more while this world tries to sort itself out.
