The effects of President Trump’s tariffs could hit just as parents gear up for back-to-school shopping.
No matter if new deals are struck with China or other trading partners, the price hikes on clothing, electronics, and essential items for school are already noticeable. Unfortunately, the worst impacts may still be a few weeks away.
Shopping habits for back-to-school are shifting, with companies noting tighter budgets affecting consumer spending. Major retailers like Walmart and Target are sending out warnings to shoppers about these changes.
In an effort to avoid last-minute price spikes, shoppers might try to stock up on supplies early.
“Many retailers have gotten ahead of the tariffs, bringing products in sooner. They’ve worked to shield themselves and their customers,” stated Jonathan Gold, who is vice president of supply chain and customs policy for the National Retail Federation.
After a temporary agreement with China to suspend the most severe tariffs for 90 days, stores are considering increasing their orders while they can.
However, even large retailers admit that planning during a trade war is tricky.
Walmart’s CEO, Doug McMillion, indicated during a recent revenue call that the pressures from tariff-related costs are getting to the company: “We can’t absorb all the pressure,” he commented.
Trump responded, suggesting that “Walmart should stop blaming tariffs for their price hikes.” He noted the company made substantial profits last year, which was more than he had expected.
“With their strong ties to China, they shouldn’t be charging their loyal customers,” he added. “I’m keeping an eye on it, and so are your customers!”
A survey by Capital One Shopping revealed that over $41 billion was spent on back-to-school shopping last year, with more than half of consumers starting their shopping by early July.
“What we’re seeing is sort of a lengthening of the shopping season. People are already purchasing items in anticipation of price increases or shortages,” one expert explained.
The White House and Department of Commerce were contacted for comments on this situation.
Yale University’s Budget Lab projects that by 2025, tariffs could raise prices by about 1.7% in the short term. Specifically, clothing and fabric costs may rise by 14%, while shoes could see a 15% increase.
She further pointed out how unpredictable it can be for parents to budget for their children’s growth over summer and the associated costs for August.
School shopping often feels tense, with worries about possible tariff impacts lingering. Economists are already considering how tariffs might create challenges for the upcoming holiday shopping season.
