How To Spot a Tariff Markup in the Wild
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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Tariffs aren’t just headlines in the media, they’re showing up at the places where you shop in the form of higher prices. However, some companies pre-emptively raised prices or even took the threat of incoming tariffs as a reason to charge more, an extra “markup” to boost profits while blaming tariffs.
While you can’t change prices, with a little savvy shopping, you can learn to spot when this is happening — and find better alternatives.
Recognize When Prices Don’t Add Up
It may be easiest to notice tariff markups in the places you shop most regularly. If you frequently purchase clothing, electronics or groceries somewhere and notice that the prices seem abnormally higher, it might be a tariff spike. If you’re interested in playing sleuth, you can research the tariffs imposed on products and see if it seems to match, though that might require a level of research the average consumer isn’t interested in doing. Additionally, if one brand has skyrocketed while others haven’t, you may be paying more than you should — and it might have to do with where the product is manufactured.
Know Which Items Are Hit the Hardest
It’s not hard to investigate which items are hit the hardest by incoming tariffs — plenty of articles abound pointing out the ways you’ll be paying more money for the same items (or already are). Everything from cars, clothing and toys to coffee and electronics are all seeing big price jumps thanks to tariffs. However, some categories have gone up by 50% (for items from Brazil or India). If you’re in the market for a new car or even a back-to-school wardrobe, expect sticker shock.
‘Tariff Engineering’ Tricks Might Work in Your Favor
Believe it or not, some companies literally design products to dodge tariffs, a function known as “tariff engineering,” and this can work in your favor. By “leveraging strategic design choices,” according to a customs lawyer speaking to CNBC, such as switching out synthetic materials for cotton, in one instance, can help companies save money and not pass on tariff costs. In some cases, this may organically raise prices due to higher material costs, but in others, it might mean you can expect your prices to remain the same.
Don’t Panic or Doom Buy — Be Strategic
What you don’t want to do is “doom buy” or stockpile items when you hear prices are climbing, especially anything that could go bad. Some prices could spike temporarily and then stabilize, especially if consumers start taking their dollars elsewhere. Instead, stick to your essentials and only buy a little bit extra if you can. Focus on things with a shelf life.
Turn To Resale and Secondhand
Since tariffs affect brand-new goods, this is a great time to buy secondhand, instead. Thrift shops, online consignment sites and resale apps never run out of goods. These are great places to look for cheaper ways to dress, furnish homes and even shop for kids’ gear. It’s also a greener choice that saves you money while cutting waste.
Pick Smarter Substitutes
One of the simplest ways to beat tariff markups is to choose alternatives. Products made in the U.S., some generic brands and local substitutes could get around international tariffs altogether. For example, swapping imported olive oil for a California-made brand, or choosing U.S.-made jeans instead of a foreign label, can mean significant savings without sacrificing quality.
While tariffs can push up the cost of everyday items, not every price hike is inevitable. By knowing where markups hide, watching which products are most affected and making smart swaps, you can keep more money in your pocket.
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