Want to avoid price hikes from Trump’s tariffs? These shopping tips can help you save

While Americans and businesses were expecting President Donald Trump to announce new tariffs on imports, those he put forth on 2 April, dubbed ‘Liberation Day’, were jaw dropping. The turmoil that they triggered eventually caused the White House to “pause” them for 90 days.

This week, the Trump administration reached an agreement with China to ratchet back the escalating trade war between the two nations. The US lowered its 145% tariff on Chinese goods to 30%, and Beijing will drop its levy on American goods to 10% from 125%. However, the deal is temporary while negotiations continue.

Despite the rapprochement between China and the US, as well as the deal between the US and the UK, the White House has kept in place a flat 10% on most countries and a 25% tariff on goods from Canada and Mexico. Although certain goods are exempt, there is still a much higher tax that Americans will have to pay on goods from our three largest trading partners, Mexico, Canada and China.

The Yale Budget Lab estimated after the agreement with China that US households will lose an average of $2,800 per year in purchasing power. But there are some ways that Americans can avoid price hikes from Trump’s tariffs.

Navigating Trump’s tariffs to keep money in your pocket

Firstly, as consumers we should think about what we need versus what we want and then find out where it comes from, as the tariffs will primarily hit products coming from abroad.

One of the easiest ways for shoppers to save money is to plan ahead. Make a list of things you may need and take advantage of upcoming holiday sales like those for Memorial Day or Amazon Prime Day, among others.

Trae Bodge, a shopping expert, speaking with CBS News shared some tips to keep the tariffs from denting household budgets. First off, don’t panic buy.

Purchase products that are made domestically. Fortunately, 99% of toilet paper is, so you don’t need to stock up in such a way that you leave the shelf empty for the next customer.

But when it comes to saving money, Mark Cuban recommends buying replenishable items that you use frequently, like toothpaste or soup or toilet paper, in bulk. He says that can produce savings of 30% to 50% and is “the best guaranteed return on investment” anywhere.

When it comes to perishable fresh produce, certain items are imported from Mexico which will see a price hike, so you may want to shift to food items that are grown in the USA to keep more money in your pocket.

As far as electronics, toys and some apparel, these will most likely be the hardest hit by the import taxes as China produces the majority of them currently. Manufacturers are in the process of moving production out of China to other countries, including to the United States, but that process takes time.

Bodge says that consumers should take a look at what items they are thinking about buying and consider whether they should move up when they make that purchase. “So, if your dishwasher is on its last legs and you were thinking about getting one anyway… I would think about getting [it] now," she says.

The same goes for a car or laptop but she stressed not losing one’s head “in a panic.”

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