PHILADELPHIA – If you’re in the market for a new car or looking to put an addition on your home, you might want to put a pin in those plans for now.
Financial Advisor Robert Wilson expects the newly announced Trump tariffs to put the squeeze on several industries, including automotive and housing.
The White House says it expects to raise $100 billion in revenue annually from these new duties and Trump sees his tariffs as providing national redemption.
“Jobs and factories will come roaring back to our country and you see it happening already,” Trump said.
“We will supercharge our domestic industrial base. We will pry open foreign markets.”
Buy or wait?: Cars
Wilson says anyone shopping for a new car should probably wait, but there are some exceptions.
New cars that are already on dealership lots in America are likely free from the new import tariff, Wilson says.
“Cars that are on the lot right now probably won’t have tariffs slapped on them, but there are a lot on ships that are on their way here that are going to be pricier,” Wilson said.
Ditto for used cars, which might be an attractive option for shoppers looking to save money.
A 25% tariff on auto imports began on Thursday, and other tariffs will follow through May 3.
Buy or wait?: Electronics
The time is now to buy any new electronics or appliances that you’ve had your eye on, Wilson says.
Most of these items are made overseas, including a 34% tariff on China and 32% tariff on Japan, Korea, and Taiwan.
“I’d be going out to Best Buy, Target, Walmart today,” Wilson said. “In the last administration, we saw tariffs on washing machines, then the driers went up.”
Buy or wait?: Subscription services
Since subscription services aren’t impacted by imported goods or materials, Wilson says don’t expect to see a spike in prices.
It’s also unlikely that domestic air travel will be impacted by the tariffs, Wilson says, but international flights could be slightly more expensive.
Buy or wait?: Houses
Right now is not the best time to have a house built or start construction on an addition, Wilson says.
Since America imports most of its lumber from Canada, the cost of having a new home or addition built is expected to be sky-high.
“I know where the housing market is right now, but existing homes may be on a relative basis cheaper than going to build a new home,” Wilson says.
Buy or wait?: Alcohol
How much your bill at the bar goes up is completely dependent on what’s in your glass, Wilson says.
While domestic products are expected to remain unchanged, foreign libations will have to weather the tariffs.
“Foreign wines, liquor, those things are going to get more expensive,” Wilson said. “If you like your Italian wines, you might want to hold off.”
The good news is that there are alternatives, like California wines and whiskey from southern states.
