John Gutierrez, a resident of Austin, Texas, had been contemplating purchasing a new laptop for over a year. His work in photography necessitated a device with improved processing speed and greater storage capacity. He had decided on a model produced by a brand from Taiwan. However, following an announcement by President Donald Trump of sweeping new tariffs, including a 32% tax on Taiwanese imports, Gutierrez moved quickly. On the very day of the announcement, he went ahead and ordered the laptop for $2,400 from a New York-based retailer that specializes in photography equipment.
Gutierrez explained his decision, saying, “I thought I’d bite the bullet, buy it now, and then that way I’ll have the latest technology on my laptop and don’t have to worry about the tariffs.” He was part of a wave of U.S. consumers hurrying to make significant purchases before the tariffs were enforced. Economists have highlighted the likelihood of increased prices for everyday goods due to these tariffs and warned about potential negative impacts on the U.S. economy.
The administration’s strategy behind the tariffs aims to urge other nations to open their markets to more American products, potentially leading to talks that could lower tariffs. Alternatively, it could prompt companies to boost production within the U.S. to dodge higher import duties. In a related scenario, Rob Blackwell from Arlington, Virginia, and his spouse required a new vehicle capable of enduring long trips to their son’s distant college. Their outdated electric vehicle, restricted by its range, was soon to be repurposed for their daughter, primed to obtain her driver’s license.
Rob explained that he had been considering the car purchase for some time but watched closely for the President’s moves regarding tariffs. Eager to acquire another electric vehicle but aware of the rapidly advancing technology, he felt leasing was a more sensible option. The Blackwells were attracted to the General Motors Optiq, an American brand but manufactured in Mexico, which might face supply chain tariffs, potentially raising costs. They preemptively arranged the lease ahead of the tariff formalization, and despite anticipating price changes, the dealership respected their prior deal.
Expressing his satisfaction, Blackwell noted, “They know what we know, which is suddenly it flips from a buyer’s market to a seller’s market very quickly.” He views his decision as a straightforward and logical response to governmental policy changes. Similarly, Lee Wochner, head of Counterintuity in Burbank, California, was in need of a vehicle better suited for professional engagements. His decision had been postponed due to an overflowing schedule.
On Thursday, March 27, he contacted his car broker, urgently requesting a vehicle by the weekend. The broker provided several options, and Wochner leased an Audi Q3, which arrived at his residence by Sunday, courtesy of a neighboring dealership. A quick assessment showed Wochner saved approximately $4,300 by securing the lease prior to the introduction of tariffs. His broker noted that some dealerships were already renegotiating deals in fear of a lack of affordable inventory.
Wochner perceives rising prices as a symptom of diminished trust in international trade relations with the U.S. He advises, “If you need a new car, if you can get that pre-tariff deal still, you should go get it because who knows what next Wednesday might be like.”