PALM BEACH COUNTY, Fla. — WPTV is diving into the numbers and how the tariffs could put a major price tag on holiday shopping this season.
Thursday President Donald Trump announced that China will face a 145% tariff.
WPTV reporter Joel Lopez found that the biggest imports from China are phones, computers electronics and toys, all of which are big holiday shopping items that could more than double in price by year's end.
WATCH: This is why you should shop now for the holidays
"I think as it gets closer to like different holidays that will make a huge impact to people, to kids, the laptops, the phones," said Holly Maisto.
She was in Palm Beach Gardens shopping for a 3-year-old's birthday.
"What's your concern leading up to the holidays?" asked Lopez.
"That things will become unavailable and when you have less supply, of course the demand goes up and the price goes up," Maisto said. "I mean, everyone is going to be affected."
We turned to Jim Arpe, the owner of Learning Express Toys in Palm Beach Gardens, where 90% of their inventory comes from China. Arpe said he has gotten notices across the board that the prices will go up.
"We buy what we need to, it's difficult to buy ahead of time," he said. "We usually do our buying in June at a convention when we meet with vendors. All of this is going to be contentious, because tariffs have come on and come off ,so the pricing is uncertain."
He said he may have to buy less items and keep his inventory low as he predicts sales will go down and will have to raise prices to stay afloat.
"We're a small business here, we'll try to hold the prices the best we can," Arpe said. "I hope the customers, my costumers stay with me and understand that I'm not out to take the opportunity to gouge them. I'm just trying to maintain the cashflow to stay in business."
The shop has been around for over 25 years establishing a loyal fan base thanks to their superior customer service. About 40% of their sales comes from the fourth quarter.
"It's going to be very uncertain between now and Christmas holidays," said Arpe. "Where the prices are doubling or more than doubling, there's no way we can sustain that."
So, if you're budgeting, when should you buy for the holidays?
A supply chain expert we spoke with financial expert Keith Singer who said right now tariffs are unpredictable so prices could go back down but they could also get even more expensive.
He said the cost will fall on consumers.
"If you're planning on buying something that you know you're going to buy it wouldn't hurt to buy it now before there are tariffs," said Singer. "
He recommends you buy those holiday gifts now to avoid the financial gamble on future tariffs.
"The idea is if it costs more to import things maybe we should just build them in America where there's no tariffs but its still gonna cost more because the labor is more expensive in America."
