All the tariff/Import Taxes increase scrfeaming across the media HAS some people trying to make big purchases NOW before the Trump’s stuff possibly kicks in….
As the White House announced a slate of tariffs, Americans headed straight to car lots. Reddit threads encouraged expecting parents to act now and secure a car seat and stroller before it’s too late. Others questioned whether they should buy Christmas presents now, far ahead of the holiday season.
As tariffs have been announced and then scaled back, many consumers are left unsure of what to do and tempted to make big purchases or stock their pantries now in case prices suddenly skyrocket.
“There’s panic buying going on and panic selling by investors, too,” Gene Munster, managing partner at Deepwater Asset Management, told the New York Times. “It’s more turmoil than I’ve seen in 20 years following the company. The speed of it has been crazy.”
Panic buying is an emotional response to disaster or uncertainty, explained Tyler Schipper, associate professor of economics at the University of St. Thomas. It’s often driven by a fear that there will be big price increases or shortages….
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There may be a decent amount of panic buying going on, Schipper admitted, but finding data on it is hard. It’s not easy to tell how many people are stocking up on stuff they don’t need (which would be panic buying) or if people are just moving up purchases they would otherwise be making.
Automobile sales, for example, have accelerated since the Trump administration’s tariff announcements.
“People have pretty clearly moved up buying cars because they’re afraid about cars being more expensive in the future,” Schipper said. “But in a lot of ways, I put that in a different category from panic buying. I think that’s people being forward-looking and not wanting to face higher prices, versus going and buying 10 things of hairspray because you’re worried about it being more expensive. I think that’s in a different category.”….
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