UTICA, Mich. (WXYZ) — This year, as more people are thinking about what to buy for the holidays, they're also thinking about how much it's going to cost them, and one study shows it could cost an extra $132 on average because of tariffs.
Watch Christiana's report in the video player below
Joann Kerber is out holiday shopping early, as she always does.
"I'm searching for gifts for my two little grandsons, who are three and five," she said. "I like to shop early. I think there's a better amount of things then."
The owners of Toy Box in Utica say this year, it's a good thing she did while there's still pre-tariff inventory and pricing.
"When the tariffs were first announced, everybody was freaking out," said co-owner Ron Manoviec. "I mean, us included. We were scared. We didn't know what was going to happen, so we started just buying. We started buying pre-tariff pricing. We started stockpiling and getting ready. We still have some of that stuff here, so prices have not gone up as much as they could have. It's coming. I mean, we're running out of stock.
Ron and Tracey Manoviec have been in the toy business for 17 years. 80 percent of their product comes from China.
"A lot of our vendors, luckily, they've eaten a lot of the increase in cost," Ron said.
They say price increases of $1-3 on some items are much more modest than expected.
"We're seeing maybe a 9 to 15 percent surcharge on some things," Tracey said. You have to manage that, you know, it could have been worse, it could have been a lot worse."
Dr. Jeff Rightmer, an expert in Global Supply Chain Management with Wayne State University, said shoppers are beginning to see more of the tariff impact.
"As we get closer and closer into the Christmas season, and I know we're already here, you're gonna see some of that inventory get worked off, and you're gonna see prices rise," Dr. Rightmer said.
Each dollar is adding up. A recent Lending Tree study estimates that tariffs could add $40.6 billion to Holiday spending, an extra $132 per shopper.
I asked Dr. Rightmer if that estimate sounded right and if it was drastic.
"I have read several studies like that that say that the prices are going to go up, and it could be an extra hundred, two hundred, three hundred dollars depending on what you're buying," Dr. Rightmer said.
"It doesn't shock me, I mean, the price of everything has gone up, groceries, everything like that," said shopper Samantha Hunter.
The rise in prices has mom Samantha Hunter getting out early and shopping local with a plan. 'Tis the season to be prepared.
"I was planning on probably spending the same as I have the past few years, but this year as a parent, I've kind of tried to lessen what I'm spending and what I'm kinda getting the kids just to kinda keep the spending down"
