9 Smart Purchases to Make While Tariffs Are Down

Following the Trump administration's placement of tariffs on goods imported from other countries earlier this year, a tariff truce between the U.S. and China was announced. 

The tariffs will be paused for a 90-day period from May 14 through August 12. The maximum tariff rate on Chinese imports decreased from 145% to 30%, and China's tariff decreased from 125% on American goods to 10%.

As many Americans have experienced so far, tariffs have led to higher prices for impacted items, such as select grocery products, cars, electronics, and more. Even though a maximum 30% tariff is currently in place, there is no guarantee that the tariffs won't return or even increase following this 90-day period. Therefore, the time to stock up on these imported goods may be now. 

Here are a few of the things that will likely decrease in price as the truce goes into effect. Buying these items now might help you save money on essentials before they possibly skyrocket in price later.

Tariffs are taxes on goods imported from other countries. Generally, tariffs are instituted to protect domestic industry, but the tax can push the price of particular goods higher. Prices saw an intense uptick earlier this year after tariffs, especially on China, were implemented. 

However, now that prices are likely to decrease in the next three months due to the truce, companies are starting to stock up on supplies, and Americans are wondering if they should do the same. 

It's worth pointing out that stocking up only makes sense if you have room in your budget to do so without causing financial strain. If you have to go into debt or push your budget to the limit to stock up, it's probably a good idea to skip the purchase.

In fact, it makes more sense to try to get out of debt than to stock up on goods. But if you have the extra cash, here are some items you might want to buy sooner rather than later.

Many shoes, accessories, and clothing items are manufactured in another country, particularly China. The Trump administration has reduced tariffs on "de minimis" shipments, which are goods valued at $800 or less, from China. 

The rate has been lowered from 120% to 54%. For packages delivered from commercial carriers, the tariff rate has been significantly decreased from 145% to 30%.

Many Americans buy furniture from overseas, which means these big-ticket items could possibly see a higher price tag again after the truce expires. Before the truce was enacted, there was a 145% tariff placed on Chinese goods such as furniture. Now, it is down to 30%. 

Retailer Wayfair experienced a 21% stock surge following the truce announcement. However, consumers should still be cautious as future negotiations will dictate whether this tariff drop will stay or change. 

Many of the laptops, tablets, and other electronics we purchase are generally manufactured in other countries, especially in China. Possible future tariffs on these already expensive items could mean paying more for the tech you need.

For those with a laptop on the fritz, it might be time to bite the bullet on this purchase, as right now, there is no tariff levied on these goods. Therefore, there may be a limited window to purchase laptops at lower prices. 

To save even more money, you can check out stores like Best Buy that might offer Memorial Day sales. 

If you are planning to replace a major household appliance, like a refrigerator, in the near future, pushing up your purchase date might be a good idea.

To break down the math of how tariffs have affected prices for appliances, take a refrigerator that was imported from China, which was originally $1,000 without tariffs. 

After the 145% tariff was implemented, the price could have increased by $1,450, bringing the total to $2,450. Following the recent tariff reduction to a maximum of 30%, the added cost would be $300, resulting in a new price of $1,300. 

If you were to buy that refrigerator now, compared to what you would have likely paid just last week, you would save about $1,150. 

Many vehicles are manufactured in other countries. Even vehicles assembled in the U.S. may rely on imported car parts, which affects the industry significantly. 

Earlier this May, the U.S. declared a 25% tariff on automobile parts, including electrical systems, engines, transmissions, etc. This tariff applies unless countries qualify for exemptions under agreements like the United States-Mexico-Canada Agreement (USMCA). 

Like other electronics, smartphones are mostly manufactured in other countries. Because smartphones are a top U.S. import from China, they are exempt from tariffs. 

Again, although they are exempt for now, there is no guarantee this will be the case later on. 

Although this doesn't necessarily mean you need to jump to the latest model, it could make now a good time for you to replace a phone that is on its way out, just in case. 

Most video game consoles are manufactured overseas, which means tariffs have been pushing prices much higher. That's especially true for gaming systems because many are manufactured in China. They are now subject to a 30% maximum tariff. 

So, if you were hoping to get a PlayStation 5, Xbox Series X, or Nintendo Switch, there is no time like the present to make your purchase. 

According to Politifact, China manufactures about 73% to 78% of all toys and about 85% to 90% of all holiday goods sold in the U.S. 

These are down to the maximum 30% tariff as well, and some of the best places to buy for budget-conscious shoppers include Dollar Tree, Walmart, Five Below, HomeGoods, and other large retailers.

If you need to stock up on holiday items before the summer is over or buy toys for your kids while they're on summer break, now might be a good time to do it to keep more cash in your wallet in the long run. 

While tariffs vary from country to country, when it comes to China, the 30% maximum tariff applies. 

Specifically, China has historically been a major manufacturer of apple juice. Its supply chain has been disrupted due to tariffs, leading to possible shortages. Other popular grocery items may also be on the list. 

So, if products like apple juice are usually on your grocery list, maybe research the specific brands you buy and grab extra the next time you shop. 

Trump's tariffs have likely led to higher prices for many imported goods you rely on. While a truce between the U.S. and China has temporarily suspended these tariffs, it's unclear whether they will stay this way, and these are just a few of the product categories that have been affected. 

As you weigh purchases, consider the possible future impact of tariffs. For example, returning or even higher tariffs in the future might be a good reason to upgrade your car a bit ahead of schedule.

However, only make the purchase if your finances are in good shape. Buying items ahead of possible tariffs might help you eliminate some money stress. However, if you aren't ready to make the purchase, it could backfire and actually increase your financial woes.