### Trump's Trade Plans Set to Impact Consumer Prices Drastically

As the holiday season approaches and Black Friday deals are around the corner, attention is rapidly shifting to the potential effects of President-elect Donald Trump’s proposed trade policies. With the inauguration just two months away, there is increasing concern among businesses and consumers alike regarding the wide-ranging tariffs Trump aims to implement: a staggering 60% on goods from China and up to 20% on imports from other countries.

Emily Stewart from Business Insider has delved into this issue, providing insight into Trump's stringent measures on imports and advising consumers on how best to prepare for the inevitable price hikes. The prevailing consensus among economists is that these tariffs will lead to higher prices and increased inflation as companies pass their additional costs onto consumers.

Several companies have already started to signal their plans. AutoZone CEO Philip Daniele made it clear during a September earnings call, stating, "We will pass those tariff costs back to the consumer." While Walmart's approach was less straightforward, CFO John David Rainey indicated that the retail giant, which depends on imports for a third of its products, would likely raise prices on certain items.

Compounding the issue is the potential for price increases on items not directly affected by the new tariffs. Like past inflation scenarios, some businesses may use the tariffs as a pretext for hiking prices and boosting their profits. This adds another layer of complexity for consumers trying to navigate the market.

Economists suggest that consumers might want to consider purchasing big-ticket items—such as electronics, furniture, and cars—sooner rather than later to avoid higher costs down the line. However, this strategy isn't foolproof, given that Trump's tariffs are not yet finalized, and there is still some debate over their feasibility.

Nobel laureate Simon Johnson, for instance, views these proposed tariffs as primarily a negotiation tactic aimed at China and American companies with Chinese operations. He posits that the actual measures may not be as severe as initially proposed.

Moreover, attempting to pre-empt supply chain disruptions can sometimes backfire. Earlier this year, in anticipation of potential port strikes, Target rerouted shipments to avoid stock shortages. However, when the strike concluded swiftly, the retailer found itself with an excess of inventory that was challenging to sell, contributing to a less favorable third-quarter earnings report, as noted by Target CEO Brian Cornell.

In summary, as Trump’s trade plans loom over the market, consumers and businesses are bracing for a shift that promises to change the landscape of prices and inflation. The advice from economists is to act with caution, prepare where possible, but remain flexible as the situation continues to evolve.