Americans have stepped up their spending on cars and other big-ticket items in recent months, rushing to get ahead of President Donald Trump’s stiff tariffs.
Economists say the rush in spending has put the US economy in a more vulnerable position, especially if the labor market begins to deteriorate. Already racked by economic uncertainty, consumers who bought big-ticket items now have to pay a hefty bill or take a hit to their savings.
On top of that, it’s gotten more difficult to find a job, credit accounts that are newly delinquent are rising, and Trump’s volatile trade war could deliver a double whammy of stagnant economic growth and rising inflation — a destructive combination known as “stagflation.”
So if the expectation is that Trump’s tariffs are going to jack up prices, it could make sense to forward a purchase to avoid sticker shock, as many Americans did earlier in the spring, according to Commerce Department data. Retail spending was much weaker in April compared to Americans’ tariff-fueled buying frenzy in the prior month.
Were you one of those consumers who recently rushed to buy a car, appliance or other big-ticket items over tariff worries? Tell us about your financial situation below.
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