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Is it really a good idea to buy extra stuff before tariff price hikes kick in?

Consumers are spending to get ahead of tariffs, but going too hard could pinch budgets down the line.

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Brands like Apple have reported rising sales as shoppers stock up on big-ticket items like electronics.
Brands like Apple have reported rising sales as shoppers stock up on big-ticket items like electronics.
Scott Olson/Getty Images

From Apple to Audi, consumer goods companies have been reporting rising sales. And if the April retail sales numbers we get this Thursday look anything like they did the month before, they’ll show that consumers are indeed trying to get what they need before tariffs hit their pocketbooks.

David Swartz has been seeing quite a few car commercials promoting pre-tariff pricing.

“Even local dealers were clearly encouraging people to buy now and not wait ‘til later,” he said.

Swartz, a senior equity analyst at Morningstar, said that companies in all kinds of sectors are warning that prices will go up and inventory will go down. That triggers a scarcity mindset in consumers, per Dan Blanchard, senior associate director at the Yale Center for Customer Insights.

“The idea that you need to get it before it’s gone,” he said — especially for big-ticket items like electronics and appliances.

Blanchard said that if you’re planning to buy something in the next few months, it does make sense to buy it now. But don’t get too caught up in stocking up.

“It’s easier for consumers to disproportionately focus on immediate costs and savings” than it is to think about the long-term effects on their wallets, he said.

Throwing off the budget or going into credit card debt to save now could cost more down the line — especially if there’s an economic downturn.

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