As Higher Prices Loom, Should You Start Stockpiling?

Just when the gas pedal was starting to ease up on the inflation front, there’s a new reason to worry about rising prices — tariffs.

If they’re fully implemented, new tariffs President Donald Trump imposed on imports from Canada, Mexico and China last week would cost the typical U.S. household over $1,200 each year, according to estimates from the Peterson Institute for International Economics.

And that could be just the beginning — Trump has suggested the European Union may be next.

So, what can you do to prepare? One school of thought is to watch and wait, given how fast the situation is changing. After all, the tariffs are a power play, and Trump has already agreed to delay the ones for Canada and Mexico at least 30 days because leaders in those countries yielded a little on border policy.

But what if you’re the kind of person who likes to assume the worst and hope for the best? Should you be considering stockpiling at the grocery store or Target? A recent Nielsen IQ survey suggests 43% of American consumers are indeed leaning that way.

If you’re trying to decide what to stockpile, here are a few things to consider:

First, think about how perishable each item is. Those creamy Mexican avocados? Forget it — they’ve gotten overripe on your counter just since you started reading this article. But Canadian bacon? That lasts longer, if you’ve got plenty of freezer space to store it.

What about that new refrigerator you’ve been eyeing, the iPad you were planning to get for your kid’s birthday or even the new car you’ll need next year? These are among the many things expected to become more expensive. Should you make any of these big purchases sooner than you’d planned?

If you have most or all of the money saved already, it may be worth pulling the plug a little early. But tread carefully if you’d have to take on debt now for something that might be more expensive later.

The breadth and length of the tariffs aren’t guaranteed, but if you put a big expense on your credit card or take out an auto loan, the interest you’ll pay is. And that interest could easily erase any money you saved yourself. (It’s also worth noting that it may take a couple of months before we see price spikes on durable goods like cars and cellphones, according to press reports.)

So what? Stockpiling can be a good strategy, but only if you have a plan. And given the uncertainty around tariffs and the complexity of modern consumer goods, the added costs for some products could be absorbed before they hit us.

When you can afford to stock up on things that last — without taking on debt — it’s probably worth it. Otherwise, focus on other ways to make yourself more financially resilient, like building a stronger emergency fund.

Related Reading

•   Tariffs: How They Work, Who Pays for Them and Why Trump Loves Them (CNBC)

•   What Trump’s Trade War Would Mean, in Nine Charts (Council on Foreign Relations)

•   National Center for Home Food Preservation (University of Georgia)

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