I keep seeing articles about consumer confidence rising based on the hope that 2025 will be better economically. I don’t know who those people are, but I’m happy if someone is feeling confident about the future. However, I’m not convinced that shopping in 2024 is confidence so much as panic about what across-the-board tariffs will do to prices.
What Are People Buying?
We already know that smartphones, gaming systems, and laptops are going to be more expensive if tariffs are imposed on China. Tablets, small appliances, AirTags, and toys are also going to be costlier. As luck would have it, these are also items that are being bought as we slide into the holidays.
Obviously, toys are usually on the list for holiday gifts, but toasters? Sure, if you remember the Everybody Loves Raymond episode with the engraved names on the toasters, they could be on your list. Hair dryers? Vacuums? Maybe. But they are also on the list of things that are likely to be more expensive if tariffs go through, according to the National Retail Federation.
What About Major Appliances?
We still live in a minimalist state of mind and practice. We are much more likely to embrace experiences than buy a sweater we don’t need. That’s not to say that I don’t look at certain clothing and exclaim, “Ooh! Pretty!” I do. I’m just more likely to focus limited resources on theater tickets, an upscale restaurant experience, or travel.
But when we bought the cottage, we knew that our gas appliances would need replacing within five years because they were getting worn. Our overall goal was to go solar and replace the kitchen appliances with electric ones when they wore out. But not only will the appliances themselves be more expensive with the proposed tariffs, but the green rebates that were part of Biden’s IRA are also likely to be ended by the new administration in 2025 – making them effectively even more expensive.
Is it tempting to go out and buy major appliances now? Yes. Even for us. I’m guessing the same is true for other consumers, even if they are minimalists.
Solar Panel Shopping?
Solar panels? Forget it. Unless we come into a lot of money in 2025, we are unlikely to make the leap with the IRA rebates likely going away, China already warning of tariff retaliation, and the desire to buy from a company other than Tesla. Could we do it now before January 20th? No. It’s a big investment, and it would take time to get a qualified crew together to do the installation.
Should we talk about the cost of day labor and construction materials in 2025 if there are huge tariffs on Canadian wood or mass deportations? No. Let’s save that for a later blog.
Conclusion
We are going to have to do a deep dive on the costs associated with living, remodeling, and construction after the new administration takes office. For now, I get why people are rushing out to get smaller items, particularly things like smartphones, electronic gadgets, and toys before prices go up – and just in time for Christmas.
Is it all bad news? Well, the general situation is not great. But I’m here to help you figure out how to thrift, repurpose, and repair to stretch your budget if those tariffs do land.
The next blog? I have so much to say about clothing and shoes. Who knew I had so much to say about apparel?