EDITORIAL: Trump's trade war will send prices sky high

How to prepare for the upcoming price hikes

Donald Trump’s trade war is about to make everything more expensive. If his proposed tariffs go into effect, American consumers will bear the brunt of higher costs across the board—whether they’re shopping for a new car, filling up at the gas station, or even picking up a carton of eggs. Tariffs are, in essence, a tax on consumers. While they are often framed as a penalty on foreign nations, the reality is that these costs get passed down to everyday Americans. If you think inflation has been a problem, just wait until tariffs start driving up prices even further.

One of the biggest sectors that will feel the impact is the auto industry. If you’re in the market for a new car—whether electric or gas-powered—you may want to buy sooner rather than later. Trump has made it clear that he plans to eliminate the $7,500 federal tax credit on electric vehicles, which will immediately make EVs more expensive. On top of that, many of the components that go into cars are sourced globally. Canada and Mexico play a crucial role in automobile manufacturing, and tariffs on these imports will lead to higher sticker prices at the dealership.

Even if you’re sticking with a traditional gas-powered vehicle, you’re not off the hook. Many internal combustion engine vehicles rely on parts from Canada and Mexico, and if Trump slaps tariffs on imports, those costs will filter down to consumers. And then there’s the issue of fuel. A significant portion of the oil refined into gasoline in the U.S. comes from Canada. If tariffs disrupt this flow, we can expect gas prices to surge, further squeezing American budgets. Stocking up on gasoline isn’t exactly feasible for most people, but those who rely on affordable fuel for their daily commutes will undoubtedly feel the pain.

The effects of Trump’s trade war go beyond cars and fuel. Take eggs, for example. They may seem like an unlikely casualty, but they’ve already become a symbol of price instability in recent years. The USDA has warned that due to bird flu egg prices are likely to remain high in 2025, and trade disruptions could exacerbate the problem. Unlike other goods, eggs aren’t easy to stockpile—though some people have experimented with freezing them.

Avocados are another grocery item likely to see a spike in price. The vast majority of avocados in the U.S. come from Mexico, and tariffs would make them significantly pricier. If you can’t live without your avocado toast, you might want to consider freezing some. While it might seem absurd to strategize around avocado storage, it’s a sign of just how deeply tariffs can disrupt everyday spending habits.

And then there’s lumber. The cost of building materials has already surged due to supply chain disruptions and previous tariffs on Canadian timber. If Trump escalates trade barriers, construction costs will soar even higher. If you’re considering a home renovation or an addition, now may be the time to lock in prices on materials before tariffs drive them up further. The same logic applies to other non-perishable goods that are sourced internationally—things like sugar, maple syrup, nuts, and cooking oils could all see price hikes.

But there’s a catch to all of this. When consumers anticipate shortages or price increases, they tend to rush out and buy in bulk. We saw this phenomenon during the pandemic with everything from toilet paper to canned goods. When people panic-buy, it creates artificial supply shortages, which in turn make prices spike even faster. The very act of trying to shield oneself from rising costs can end up worsening the situation for everyone.

So what should you do? There’s no perfect answer. Some people may decide to make major purchases sooner rather than later—buying a car before prices go up, securing construction materials before tariffs hit, or stocking up on non-perishable goods. Others may decide to wait and see how things unfold. But one thing is certain: if Trump follows through on his tariff threats, Americans will be paying more for just about everything. And that’s not something we can afford to ignore.