Amid the introduction of new reciprocal tariffs by US President Donald Trump for several countries, Americans have begun stockpiling essential goods en masse. This is linked to the expected price increases following the onset of a global trade war. Similar situations were observed during the coronavirus pandemic, which led to product shortages and inflationary processes.
This is reported by Finway
Some Americans admit to buying double the amount of products such as beans, canned goods, flour, water, sugar, oil, and hygiene products. They are convinced that retail prices will soon rise due to the new tariffs.
At the same time, many shoppers are taking a wait-and-see approach, fearing that panic buying could create a surge in demand, which in turn would exacerbate inflationary trends.
Economic Consequences of the New Tariffs
The nonpartisan nonprofit research organization The Tax Foundation has calculated that the new tariffs could cost Americans about $3.1 trillion over the next ten years. As a result, a tax increase of approximately $2,100 is expected for each household by 2025.
Memories of the Pandemic
Manish Kapoor, founder of the supply chain management firm GCG, noted that the new tariffs are once again raising concerns about empty shelves in stores, which were characteristic during the pandemic. They then led to serious supply disruptions and inflation.
“We saw this during Covid when everyone frantically grabbed everything on the store shelves, regardless of whether they needed it or not. It’s not as serious now, but people are worried that the cost of goods will rise, and that, you know, it’s worth stockpiling,” said Kapoor.