Rising costs made it increasingly difficult for Americans to afford everyday necessities in 2025—and the outlook for 2026 appears even more challenging. With new tariffs set to take full effect, Wells Fargo is urging consumers to consider purchasing certain essential items sooner rather than later, before prices climb further.
Tariffs introduced in 2025 are expected to be a major driver of the upcoming price increases. According to a report in Fox Business, many retailers had previously insulated shoppers by stockpiling inventory ahead of the tariffs. That buffer is now fading, meaning the real cost impact of the trade policies is expected to show up on store shelves in the coming months.
The duties are projected to raise the cost of new shipments significantly, with inventory still in transit from overseas suppliers expected to increase by 62%. Household goods are likely to be among the hardest hit, as retailers in this category rely heavily on imported products. With little room to absorb the added costs, companies are expected to pass much of the financial burden on to consumers.
Lauren Murphy, managing director of Wells Fargo Retail Finance, advised shoppers planning major furniture purchases to act quickly. Once import duties are fully reflected in prices, furniture could become far less affordable for many households. Given how essential these items are, the expected increases are unlikely to be welcomed by consumers in the new year.
Murphy also anticipates higher prices for apparel, though she noted that lower starting price points may make those increases somewhat easier for shoppers to manage. Larger-ticket items like furniture are more vulnerable, where even modest price hikes can push them out of reach. Retailers may also suffer, facing the risk of paying higher import duties only to see demand weaken as prices rise.
Price sensitivity was already a concern for retailers during the recent holiday season. To retain customers, many took steps to limit visible increases. Murphy said retailers “have largely tried to either hold or modestly increase prices this holiday season across categories, with many offering targeted promotions and even deeper discounts on select items.”
The full extent of how tariffs will affect the cost of essential goods in 2026 remains uncertain. What is clear, however, is that low- and middle-income households are likely to feel the strain most as higher prices begin to take hold.
