A few weeks ago, I wrote a column on the market’s take on tariffs and how—at least in the short term—the tariffs would affect certain market sectors and which areas investors may find attractive during the coming disruption.
Today, I want to talk about one way that consumers may benefit—over the next couple of months—from tariffs. And that’s by opening your wallets to purchase big-ticket items that you may have been hesitating to buy due to the current uncertainty.
What, you say? You want me to spend my money when I see my investment account dropping?
Yes, I know it sounds contrarian, but I’m only suggesting you do this for items that you intend to purchase sometime soon, anyway.
[text_ad]
You see, the tariffs have not come into play just yet—as far as pricing goes. It may take a few months, so if you were planning to buy or lease a new car, invest in a computer, replace your washer and dryer, upgrade your HVAC unit, or buy a new smartphone or video game console, spending your money on one of these items right now may actually save you hundreds, if not thousands, of dollars (funds that you can put aside to buy some investments at discounted prices)!
Just think about it for a moment, and while you do that, ponder the estimated price increases for some goods, if the tariffs stick:
Automobiles: According to the Anderson Economic Group, “American consumers could end up paying an additional $2,500 to $5,000 for the lowest-cost American cars, and up to $20,000 for some imported models.”
Clothing: Many consumers buy clothing at Walmart and Target, apparel that is primarily manufactured in Asia. Tariffs are hefty for the big three clothing producers: 34% for China, 46% for Vietnam and 37% for Bangladesh. By your summer vacation, many of these tariffs will be affecting your resort clothing, pushing prices as much as 20% higher.
Wine and spirits: You can expect up to a 40% increase on these items, according to Amoroso, owner of direct-to-consumer wine retailers. With this in mind, I recently tried to ship some wine home from Italy to Tennessee, but Tennessee’s archaic liquor/wine laws don’t permit it. Too bad!
Smartphones: It’s predicted that smartphone prices could top $2,000 after tariffs, as most are assembled in China. A recent article in the Wall Street Journal, said, “Apple’s total cost of parts for the 256 GB variant of the iPhone 16 Pro, for example, will go from $550 to $820, due to a hike of 54% on imports from China.”
Appliances: It’s expected that due to metal tariffs, the cost of appliances may rise up to 20% more post-tariffs.
This page from CNBC includes a chart showing some estimates of additional commonly purchased household goods and the effects that tariffs may have on their prices:
As a result, you may want to contemplate buying some of these items before the tariffs hit.
3 Safe-Haven Buys for Tariff Uncertainty
Now, switching back to investments, I want to leave you with a few ideas on what I call “safe haven” investments during this market uncertainty. Of course, this is a time when cash is king, and you should keep plenty on the sidelines for the next market up-bounce. But in the meantime, if you do have a bit of excess cash, you may consider these ETFs:
Gold SPDR (GLD)
The Trust holds gold bars and from time to time, issues Baskets in exchange for deposits of gold and distributes gold in connection with redemptions of Baskets. The investment objective of the Trust is for the Shares to reflect the performance of the price of gold bullion, less the Trust’s expenses. The Sponsor believes that, for many investors, the Shares represent a cost-effective investment in gold.
S&P 500 Low Vol Invesco ETF (SPLV)
The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index. Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices LLC (the “index Provider”) compiles, maintains and calculates the underlying index, which is designed to measure the performance of the 100 least volatile constituents of the S&P 500 ® Index over the past 12 months as determined by the index Provider.
Altrius Global Dividend ETF (DIVD)
To pursue its objective, the fund will invest at least 90% of its net assets, plus the amount of any borrowings for investment purposes, in dividend-paying equity securities. The principal type of equity security in which the fund will invest is common stock. Under normal market conditions, at least 30% of the fund’s assets will be invested outside the United States.
[author_ad]
