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regular-article-logo Wednesday, 21 May 2025

As tariffs hit, Americans race to buy iPhones, gifts; ' awakening time for all'

As the Trump administration’s trade war with China escalates, many consumers have raced to purchase foreign-made products out of fear that companies could start to raise prices soon

Madeleine Ngo Published 13.04.25, 09:18 AM
Representational image

Representational image File image

Emily Moen, a coffee shop manager in Omaha, was scrolling through TikTok earlier this week when she came across a video informing her that President Trump’s tariffs could lead to higher prices for essential baby products.

Moen, who is 15 weeks pregnant, said that she had not planned to buy a car seat soon. But after watching the video, she researched the one made by Graco that she had been eyeing, and learned that it was manufactured in China. Worried that the $200 seat could get even more expensive, she bought the item on Amazon the same day.

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“It was like an awakening to get this done now,” said Moen, 29.

As the Trump administration’s trade war with China escalates, many consumers have raced to purchase foreign-made products out of fear that companies could start to raise prices soon. Some have rushed to buy big-ticket items like iPhones and refrigerators. Others have hurriedly placed orders for cheap goods from Chinese e-commerce platform.

The White House this week imposed a minimum tariff rate of 145 percent on all Chinese imports to the US, on top of other previously announced levies, including a 25 percent tariff on steel, aluminum, cars and car parts.

And last week, Trump ordered the end of a loophole that had allowed goods from China worth less than $800 to enter the US without tariffs. Some early data show that consumers flocked to stores and stocked up on goods after the administration announced sweeping tariffs on nearly all trading partners. Trump backed down on some of those threats this week and instituted a 90-day pause on more punishing levies. But he said that the halt would not apply to China, and he instead raised tariffs again on all Chinese goods.

China is the second largest source of US imports, and makes the bulk of the world’s cellphones, computers and toys.

According to Earnest Analytics, a firm that analyzes data on millions of debit and credit card payments, consumer spending at Apple was up 20 percent between April 2 and April 7 compared with average spending there in recent months. Spending was also up 10 percent at Home Depot and 18 percent at the department store chain Belk, according to the analysis.

Consumers have also raced to grocery stores, large discount chains and car dealerships in recent days. Purchases of shelf-stable goods surged in the five days following Trump’s tariff announcement on April 2, with sales of canned and jarred vegetables up 23 percent, sales of instant coffee up 20 percent and ketchup sales up 16 percent compared with the same period the week before, according to data from Consumer Edge, a company that tracks consumer behavior.

Although some consumers have been more strategic with their purchases, others might be stockpiling because of uncertainty about which products will be affected by tariffs, and whether companies will raise prices, analysts said.

The threat of higher prices has also prompted many consumers to buy electronics, particularly iPhones. For more than a decade, American shoppers have purchased iPhones each year beginning in September, when Apple releases its newest models. But Trump’s tariffs have turned April into this year’s iPhone-buying season.

In one Facebook group for families in the Los Angeles area, parents shared notes about Apple products, video game consoles they had purchased and where they had seen the lowest prices. “We were talking about getting our son an iPhone when he turns 14 at the end of the year, but we are going to buy it now,” wrote one parent, in a Facebook group for families in the San Francisco area. “We just have to hide it from him until his birthday.”

Bree Chaudoin, 47, a lending support specialist in Normal, Illinois, said she upgraded her iPhone shortly after Trump was elected in November.

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