Pinching pennies may ascend to a new level as prices rise and empty shelves are coming. In the wake of President Donald Trump’s sweeping tariffs, shoppers will likely see an increase in prices on imported goods, spanning the retail sector. Financial experts expect increased shipping delays and a lack of items in the upcoming weeks. But the big question is, what does this mean for Americans and their wallet? Here are 3 ways for anyone to prepare and stay alert as those empty shelves loom ahead.
What is the Big Deal?
According to Investors, uncertainty between the USA and China has led to a 50% decrease in shipping cancellations. Financial experts expect less traffic in seaports and hint at the reality of fewer items on store shelves. Apollo Global Management Chief Economist Torsten Slok recently explained the process of cargo ships requiring 20-40 days to cross the Pacific Ocean, thus making May the potential target date.
Mr. Trump’s tariff legislation went into effect on April 2 – called “liberation day” – and sparked a fall in the largest S&P 500 loss since WWII, according to Fox News. But the coming empty shelves make Wall Street seem a world away in the face of everyday living.
However, President Trump remains confident that the market’s negative response will not last long. American families and businesses will ultimately benefit from the tariffs, putting America’s needs before global interests.
David F. Feldman, a professor and economist at William Mary College, shed light on the projected timeline in an April 29 interview with Fox News. Feldman said the increases are “not showing up tomorrow, but will show up over the next few months, as scarcities develop and American retailers have to find other sources – that might take a while.”
Empty Shelves Coming
Will those empty shelves haunt the ubiquitous big-box stores? According to recent stock reports, the retail giant Target has reported a 7.7 % drop in stock, along with the online titan, Amazon, which rang in at a 1.4% decrease. On April 9, Apple announced that its stock (AAPL) dropped nearly 5% in the wake of Trump’s ultimatum to China.
Yet, amid all the uproar, Walmart reported an 8% increase and gain.”Walmart is working hard to keep prices low on as many products as possible, despite uncertainty over President Trump’s aggressive tariffs,” a company statement recently said. To the relief of US customers, Walmart seems to be keeping its word.
Seeking solutions for potential supply chain woes continues for major retailers across the nation. By sourcing domestically, the price for certain goods will begin to “level out,” according to Trump in his interview with Time magazine.
Knowledge Combats Shelf Scare
Reading headlines is one thing – being prepared for those empty shelves is another matter altogether. How can families prepare and stay alert for what is coming while reducing the mental strain and anxiety?
It is recommended to prepare in a variety of ways, including prepackaged, shelf-stable food kits. Although food is not at the top of the list, other environmental factors and stocking may impact grocery stores.
Deciding what is important will aid mental well-being. The top items on the list are electronics, toys, fast fashion, and budget home goods. Jonathan Gold, vice president of supply chain and customs policy for the National Retail Federation, said customers should prepare for fewer options, “at the least.”
Reducing the strain on the supply chain begins with simple steps and can be an enjoyable project for families. National Geographic author Kris Bordessa wrote, “Growing fruits and vegetables in your backyard will give you greater peace of mind about the food you consume, too.” Simple preparation will not only help consumers navigate challenging times but also to stay ahead of the curve of those coming empty shelves.
