The hit on local shoppers from tariffs is set to arrive — but there may be a calm before the storm.
New duties on goods are rolling out, and that means products from around the world could see higher price tags. Everything from bananas to branded bags could be under pressure. The initial tariffs took effect last week, and more, which are different by country, are set for this week.
Already, there are early signs of the impact in areas such as consumer electronics. At Nintendo, pre-orders for its much-anticipated Switch 2 in the U.S. will not start Wednesday “to assess the potential impact of tariffs and evolving market conditions,” the company said in a statement.
While there’s a lot of concern about the tariffs, it’s not entirely clear how long it will take for their effects to broadly hit shoppers in the greater Dallas-Fort Worth area. The effects could take a matter of months — as locals begin to shift buying habits now to avoid later price shocks.
“This is something that affects everybody,” said Camilo Granados, assistant professor of economics at The University of Texas at Dallas. “It’s a lot of uncertainty.”
On average, prices are typically reset in slightly over a quarter, or three to four months, but with the “tariff shock,” people are hardly in the dark about its potential impact, Granados said. Price surges may arrive more quickly than that. Consumers are likely turning up demand to get what they want before prices rise on tariffs. That could make it more like about two months.
“When everybody wants to buy a car … car prices are going to go up, right?” Granados said.
At Green Vine Market in Plano, customers have been asking about the pending tariffs that could affect the specialty Middle Eastern-focused store that sells everything from fresh produce to a butcher shop, according to Zaid Hammad, operations manager.
But the tariffs haven’t hit vulnerable items so far. They were bought from distributors that didn’t face those effects. Some of the items – including grains and spices – come from places such as Jordan, Turkey and South Asia. For now, it’s something he’s bracing for in the future. He’s not sure how everything will be affected.
“Potentially, I give it probably two or three months,” Hammad said.
At Catalyst Brands, which includes Plano’s JCPenney and other retailers around the country, the company is “closely evaluating the situation as the industry navigates this dynamic environment,” the company said in a statement.
Some companies have begun to talk about higher prices with the tariffs. Conagra Brands, maker of Chef Boyardee, may have to hike prices to offset the cost of tariffs on ingredients like cocoa, olive oil and a type of steel used for its canned food products, CEO Sean Connolly said last week, according to Reuters.
There is definitely uncertainty out there as the potential effects of tariffs hang over the economy.
“It’s very puzzling why this is happening,” Granados said. “Other countries may do the same, right? So there’s going to be retaliation. So that it’s going to be another discussion that is basically possibly going to bring another round of effects for the American consumer.”
