Commentary

The Great Pre-Chinarmageddon Sale

Why Now Is The Time To Buy Chinese Products Before Trump's Tariffs Hit

By Chris Adams • Published December 26, 2024 • Approx. 8 min read

Some facts are starting to shape our view of what the future is going to look like, and it is becoming apparent that our ideals may soon be reaching into our wallets. The fact that Donald Trump won his second term as President starting January 20, 2025 and the fact that Xi Jinping has continued to increase the hostility of the Chinese Communist Party, and all of China, towards the United States is leading us to a showdown. The first wave of this showdown will likely take place in the form of a tariff war.

US-China trade war tariffs
The Pre-Chinarmageddon Sale.

Trump has already announced plans for massive new tariffs on Chinese imports, but nobody seems to know exactly what these numbers will look like. We have heard numbers ranging from 10% to as high as 100%. This means that whatever the price of a particular product sourced from China may be today, it is effectively “on sale” compared to the price it will be after January 20, 2025.

Welcome to the "Pre-Chinarmageddon Sale" - your last chance to purchase Chinese-made products before prices skyrocket, and also before whatever ill conceived response Xi Jinping comes up with.

Why This Matters Right Now

Trump has made no secret of his intentions regarding China. During his campaign speeches and interviews, he repeatedly promised to impose "universal baseline tariffs" on most foreign imports, with China being his primary target. These proposed tariffs aren't just political rhetoric – they represent a fundamental shift in U.S. trade policy that could significantly impact consumer prices.

Let's break down what this means for YOU:

Current Situation:

What may happen::

The Shopping Window Is Closing

We are currently in a pre-tariff grace period. It remains to be seen if prices will remain static until the day of the first tariff being levied, if they will increase in anticipation and perhaps a little opportunism on the part of vendors, or some combination. In niches with low turnover, it may take weeks or even months for the prices to increase while others will snap your head around how quickly they reach into your wallet. The only thing that is certain is that once the tariffs are certain, and they pretty much are, there is no way to gain from sleeping until prices increase.

What Should You Consider Buying Now?

1. Electronics and Technology - this category has classically been among the hardest hit.

2. Home and Garden

3. Clothing and Textiles - also a likely target as there are many initiatives inside America to reinvigorate the domestic textile industry

4. Construction Materials

Understanding the Price Impact

Let's put this into perspective with some examples:

Current vs. Potential Prices (With 50% Tariff):

These calculations are simplified but illustrate the potential impact. The actual price increases could be even higher when you factor in:

Why These Tariffs Matter

Trump's proposed tariffs aren't just about making Chinese goods more expensive – they're part of a broader strategy to:

1. Reduce U.S. dependence on Chinese manufacturing

2. Encourage domestic production

3. Address trade imbalances

4. Pressure China on various political and economic issues

A pack of cigarettes used to be 99 cents, and that was in California. The per unit cost to manufacture cigarettes has not increased 900%. What has made cigarettes cost what they do today is social engineering taxes. Sure, they fund various programs for states, but they are really intended to make paying for cigarettes so painful that smokers will eventually be forced to quit by economics.

Donald Trump aims to break you of your addiction to cheap Chinese products, and you are going to feel the pain until you do. Along the way he hopes to reinvigorate industries that are dead or near-dead within the United States. Long term, it all sounds pretty amazing. However, the immediate effect will be higher prices for consumers. Whoever runs against Trump's heir-apparent in four years will almost assuredly tout how they will take the pain away. Most voters are motivated more by how well they eat and how nice their car is than they are by anything like a long term economic plan or if their grandkids will live free. Trump’s heir will have an uphill battle ahead of them.

Strategic Shopping: Making the Most of Pre-Chinarmageddon

Here's how to approach your shopping strategy before the tariffs hit:

1. Assess Your Long-term Needs

2. Research Product Origins

3. Compare Prices Carefully

4. Focus on Quality Items

The Business Perspective

For small business owners and entrepreneurs, the implications are even more significant:

Possible Timeline

This is the part where we normally give a rational plan that talks about tariffs being phased in and planning for the impact of changes that happen gradually. Thing is, love him or hate him, this is Donad Trump we are talking about here. Trump has made it clear that he intends to make high impact moves immediately, and he has a history that backs this up. His 2018 tariffs went into effect extremely quickly, and while there are those who claim he lacks the power to do such things, none of them have shown the capability to stop him. So the safe money is on “fast and hard.” The most important question is, then: what should you do?

Conclusion

The period between today and January 20th (January 10th if you’re ordering something that has to be shipped directly from China) represents a unique window of opportunity before prices on Chinese goods increase. While it's important not to panic or overspend, strategic purchasing of needed items could result in significant savings. Whether Trump's tariffs ultimately achieve their intended goals remains to be seen, but their impact on consumer prices is likely to be significant and long-lasting.

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