The extra inventory built up before tariffs hit is running out, with retail price hikes expected to become more widespread from early 2026, as holiday stock clears and pre-tariff goods are depleted, though some specific goods (furniture) saw delays to 2027. The timeline varies by product; some sectors saw inventory buffers last months (like for electronics), while others, like perishables, feel effects faster, but the general consensus is consumers will see more sticker shock soon as pre-bought stock disappears.
Key Factors & Timelines:
- Initial Stockpiling: Companies imported heavily in late 2024 and early 2025 to avoid tariffs, creating temporary inventory buffers.
When It Runs Out: Analysts predicted this extra stock would largely be gone by late 2025/early 2026, with prices reflecting tariffs more fully in early 2026.
- Fast-Moving Goods: Items like groceries (fresh produce) saw impacts sooner (months) due to shorter shelf lives and processing needs.
- Durable Goods: Automobiles and electronics had larger buffers, with price increases expected later (months out) as that stock turns over.
- Furniture/Cabinets: Specific tariffs on these items were delayed, pushing their inventory run-out and price impact into 2027, say PBS, Barron's, and Facebook.
- Retailer Strategy: Many retailers absorbed costs or passed them to suppliers to avoid early price hikes, but this cushion is finite.
In Summary: Expect to see tariff-driven price increases become more common and widespread in early 2026 as the stockpiled inventory is exhausted, with some sectors seeing this shift earlier and others (like furniture) later.
Trump's a traitor who doesn't care about democracy, and couldn't care less about what happens to any of us. MAGAts included.