CHICAGO – For early-bird shoppers, now may be the best time to start holiday shopping.
Amazon Prime Day and Target Circle Week both kick off this week, along with major sales from other retailers — all as concerns grow over how tariffs could impact gift prices this year.
In a FOX 32 Money Saver Special Report, experts say fears over rising costs are pushing more consumers to shop sooner rather than later.
What we know:
Dr. Jenna Drenten is a professor of marketing at Loyola University’s Quinlan School of Business. She said that fear may be motivating consumers to buy more holiday gifts sooner versus later.
“The potential for prices to go up on these toys, it’s not so much that they won’t be available, it’s that they’re going to be more expensive,” said Drenten.
President Donald Trump imposed a 20% import tax on European Union products in April. That tariff had been on hold at 10% while trade negotiations continued, but on Monday, Trump announced he plans to notify trade partners that if no deal is reached by Aug. 1, the original 20% rate will return.
“The tariffs could be pulled back at any point and they could also be doubled down on. and that makes it a really difficult time to try to budget as a family and figure out where you want to spend your money this holiday season,” Drenten said.
Retailers’ current toy inventory was likely purchased at pre-tariff pricing, Drenten added. Once that stock is gone, prices may rise.
Consumer finance expert Andrea Woroch said planning ahead is key to saving money this season.
“Planning ahead, picking up a few gifts on your holiday list, especially when it qualifies for some of the items that will be impacted most by tariffs like toys, is really going to help you stretch your budget and avoid going into debt, racking up a bigger balance on your credit card,” Woroch said.
She recommends setting up alerts on price-tracking apps and avoiding unnecessary spending on every sale this summer.
“You have to think about your budget. What can you afford to buy now to take advantage of the pre-tariff prices and sales on those pre-tariff inventory. But also, you don’t want to go into debt now to save because if you rack up a balance to take advantage of these lower prices, what happens is you start paying interest on that balance and that’s gonna take away any savings you got,” Woroch said.
Woroch also advises shoppers to keep an eye out for Black Friday and Cyber Monday deals, as some may still be worthwhile.
To prepare for higher prices later this year, she suggests saving a little each week or maximizing rewards points on credit cards.
“Racking up rewards and holding on to the points or cash on your credit card and using that as a way to boost your budget. Or starting to put away a little bit of cash each week, maybe $10 a week. It doesn’t sound like a lot. It should be able to be something you can meet, but it would still give you a little cushion in your holiday shopping to then cover any higher prices you might see with the tariffs down the pipeline,” Woroch said.
As prices rise, some families may forgo toys altogether.
“I think from a consumer behavior perspective, we might see a lot of families shift toward experiences and activities and maybe shift away from material goods they would normally purchase,” Drenten said.
What’s next:
When you do your holiday gift shopping, Woroch also suggests signing up for a retailer’s loyalty program or text alerts for extra savings on your first purchase.
And, if allowed, use coupon codes with sale items for deeper discounts.