Chicago area retailers, consumers concerned about effects of President Trump's sweeping tariffs
President Trump's sweeping new tariffs have launched a historic global trade war and rattled the markets — with Wall Street having suffered its worst one-day drop Thursday since the start of the COVID-19 pandemic five years ago.
The economic uncertainty also has some consumers and stores spooked, as it is not yet known how much more consumers will pay for nearly everything they buy.
Stepping into the Abt store in north suburban Glenview, one can find just about any electronic or appliance. Shoppers are always out looking for details.
On Thursday, Kevin Course and his son were searching for appliances for their Mount Prospect home renovation.
"I think it's going to have an impact on how everyone renovates their home, and I think it might stop a bunch of people from renovating their home and/or construction in general," Course said.
Yet with the talk of tariffs as high as 34%, some consumers are left wondering what it means for them.
"It's going to suck," said Course.
However, not everyone was worried about it.
"It's just a bargaining tool right now, so I'm not too worried about any of the tariffs," said Russ Loken. "I'm kind of glad it's happening."
Whether consumers believe the tariffs are tactic or not, stores like Abt, which have a majority of their appliances coming from overseas, are now prepared — because they know if the tariffs last for too long sale, prices will eventually go up.
"It's going to trickle-down. We're going to feel it. Our customers are going to feel it," said Shirley Hood of Abt. "But right now, we're not worried about it."
The locally owned electronics store said the moment the president started talking about tariffs in January, they took a huge step.
"When we heard what he was planning on doing, we started ordering extra from our suppliers we doubled our orders," said Hood.
This means currently, Abt has enough supplies in stock to hold them for some time. But the problem is once that stock is depleted, customers at Abt will see the tariffs' impact on prices.
"If you are thinking about redoing your kitchen or replacing something, do it now," said Hood. "Your best price is going to come now, because once these tariffs kick in — once we are not able to do anything about the price increase — those prices will be transferred to the customer as well."