You may want to get a jumpstart on holiday shopping with Amazon Prime Day, the mega retailer's summer shopping event. Exclusive to Prime members, the event doubled in size to four days this year, offering some of the best Amazon deals of the year. But one expert says the effects of current and looming tariffs could mean prices will begin rising soon.Â
President Donald Trump's "reciprocal tariffs" have plenty of us feeling antsy about prices. According to a recent CNET survey, 64% of shoppers said they've bought or plan to buy a tech product soon to avoid price increases or shortages. Prime Day could be a good opportunity to scoop up deals before prices go up any further.Â
Experts don't expect new higher "reciprocal tariffs" to suddenly raise prices during Prime Day since most imported products for the event are likely already in the US. But Trump imposed a 10% baseline tariff in April, plus additional tariffs on Chinese goods and a 50% tariff on all steel and aluminum imports. That means you'll likely see higher prices on many things soon.
"The general expectation is that [current tariffs] will push prices up in the second half of the year even if the additional 'reciprocal' tariffs never come into effect," said Timothy Meyer, Richard Allen/Cravath distinguished professor in international business law at Duke University School of Law. "Price increases due to tariffs are very likely for the holiday season."
Amazon launched Prime Day back in 2015, and savvy shoppers have eagerly anticipated this annual event ever since. Our CNET Deals team will track all the best deals throughout the event so you can score the lowest prices. This will help you navigate the sale and stay ahead of any tariff-based price rises.Â
Read more: Don't Wait: Score an Instant $200 Amazon Gift Card Ahead of Prime Day With This Card
How could tariffs affect Prime Day deals?
Prices on everything, including appliances, are expected to rise as a result of Trump's sweeping tariffs, and some already have. Trump announced the tariffs in April, quickly putting them on a 90-day pause but leaving a 10% baseline tax on all countries. He announced earlier this week that he's extending his original July 9 deadline to Aug. 1 for some countries. In a social media post on Tuesday, Trump insisted that the Aug. 1 deadline is final.
However, Trump has abruptly raised, lowered and paused tariffs since he originally announced them April 2, so there are no guarantees for Prime Day or going forward. Countries could face double-digit tariff hikes if they don't reach an agreement, and companies would likely pass through additional costs associated with tariffs to consumers. That means we could pay more for everything, including electronics.Â
However, if you don't have the money earmarked to shop for Prime Day purchases, don't go into debt just to grab a deal. It's better to wait, even if prices are higher later this year. Otherwise, any savings you get from the deals could be wiped out by sky-high credit card interest rates.
After launching the original Prime Day in 2015, the retailer has expanded the number of its sales events, including a Big Spring Sale in March and Prime Big Deal Days in October. Last year's Prime Day sale took place July 16-17.   Â
