Additional Coverage:
- Wells Fargo urges Americans to stock up on these items ASAP as tariffs could make them pricier (marketrealist.com)
Get Ready to Stock Up: Wells Fargo Warns of Incoming Price Hikes on Household Essentials
America’s wallets are bracing for another hit as 2026 approaches, with financial giant Wells Fargo urging consumers to stock up on everyday necessities now before tariffs push prices even higher.
Following a challenging 2025 where rising costs impacted shopping for essentials, the situation isn’t expected to improve. A new wave of price increases, primarily driven by existing tariffs, is set to make a wide range of products more expensive, prompting Wells Fargo to advise early purchases.
These tariffs, initially implemented in 2025, are now poised to fully impact consumer prices. According to a report from Fox Business, many retailers previously absorbed some of these costs by stocking up on inventory before the tariffs took full effect. This cushion is now gone, meaning the true price impact of these policies will soon be reflected on store shelves.
The financial burden is expected to fall squarely on the general public, as the duties will significantly raise the cost of new shipments. Projections indicate a 62% increase in the amount of inventory currently in transit from overseas suppliers.
Household products are anticipated to be among the most affected categories, given retailers’ heavy reliance on imports for these items. Absorbing these tariff costs will likely be unsustainable for businesses.
Lauren Murphy, managing director of Wells Fargo Retail Finance, specifically highlighted furniture as an item consumers should consider purchasing sooner rather than later. “Those looking to make some major furniture purchases would do well to check them off as soon as possible,” Murphy advised.
She cautioned that substantial import duties will soon be added to furniture prices, potentially making them unaffordable for many. Given that furniture is a critical component of thousands of households, this news will likely not be well-received as the new year begins.
While apparel prices are also predicted to rise, Murphy noted that their comparatively lower base price might make these increases somewhat more manageable for shoppers. However, for significant purchases like furniture, even a modest price hike can render them out of reach. This scenario also presents a challenge for retailers, who could face the dilemma of paying import duties only to see their products remain unsold due to inflated prices.
Retailers have already been navigating price sensitivities, particularly during the recent holiday season. To maintain customer retention, measures were taken to mitigate the impact of rising costs. Murphy observed that retailers “have largely tried to either hold or modestly increase prices this holiday season across categories, with many offering targeted promotions and even deeper discounts on select items.”
The full extent to which tariffs will impact the prices of essential items for Americans in 2026 remains to be seen. However, it is widely anticipated that low and middle-income households will feel the pinch most acutely, adding another layer of financial pressure in the coming year.