Trump's Tariffs Triple U.S. Sales for Back Market Amid Consumer Panic-Buying in Electronics

President Donald Trump's tariff hikes have led to a surge in consumer panic-buying, particularly in electronics, boosting sales for Back Market, a refurbished tech marketplace. CEO Thibaud Hug de Larauze reported U.S. sales tripled in a week post-tariff announcements. The tariffs, targeting Chinese imports, have prompted consumers to buy before price hikes, benefiting the secondhand tech market. Analysts predict a temporary shift in consumer habits, with potential long-term impacts on purchasing behavior. Meanwhile, U.S. businesses warn of rising costs and price hikes due to the tariffs.

Back Market’s Sales Triple Amid Tariff Fears

Back Market, a Paris-based platform specializing in used and refurbished electronics, has emerged as a surprising beneficiary of the latest round of U.S. tariffs. CEO and co-founder Thibaud Hug de Larauze reported that the company’s U.S. sales tripled in a single week after Trump’s tariff announcements, attributing the surge to consumer anxiety over looming price increases on new tech products.

“Maybe some people rushed into [replacing their smartphones or computers] earlier, because they were afraid it's going to cost so much more weeks from now,” Hug de Larauze told CNBC. He added that the current environment presents a “big opportunity to change the way American people consume this stuff,” as the financial incentive to avoid tariffs on new electronics has never been higher.

Tariffs Targeting Electronics Drive Consumer Behavior

The Trump administration’s tariff policy has been particularly aggressive toward Chinese imports, with most smartphones and computers—largely manufactured in China—now facing a total tariff rate of 145%. Although a temporary exemption was issued on April 11, Trump has signaled that electronics-specific tariffs could take effect as early as May.

This uncertainty has led to a wave of front-loaded consumer spending. According to a Reuters report citing U.S. Commerce Department data, the back-and-forth nature of the tariff rollout has spurred “panic-buying” across a wide range of products, especially in consumer electronics. Retail sales data from March showed a 1.4% increase, the strongest in over two years, largely driven by a surge in auto and tech purchases ahead of expected price hikes.

Analysts See Long-Term Shift in Consumer Habits

Dan Ives, global head of technology research at Wedbush Securities, echoed Hug de Larauze’s observations, predicting a “huge uptick” in short-term sales of used and refurbished devices if tariffs persist. “Companies like Apple might need to increase their prices by hundreds of dollars per product — if not more,” Ives noted, depending on how the electronics-specific tariffs are implemented.

Currently, Back Market sells only about one-third of its inventory in the U.S., but Hug de Larauze expects that ratio to flip. “What I'm expecting with the tariffs is that this is going to change [to] two-thirds being sold to U.S. customers, because there's incentives, definitely, to save money when you already need a product,” he said.

Still, Ives cautioned that the shift may be temporary. “We believe 80% to 90% of consumers like buying a new smartphone [and] buying behavior is hard to change,” he said, suggesting that many Americans may return to new tech purchases once their financial situations stabilize.

U.S. Businesses Warn of Rising Costs and Price Hikes

While Back Market enjoys a sales boom, many U.S. companies are sounding alarms over the broader economic impact of the tariffs. Businesses across sectors—from auto dealers to gaming companies—are bracing for higher input costs and potential consumer backlash.

Eric du Halgouet, finance chief of a multinational firm, told Reuters that his company would “fully offset the impact of these new duties by increasing our selling prices in the United States from May 1, across all our business lines.” Similarly, auto dealers have begun advertising “tariff-free” vehicles in an attempt to lure buyers before prices rise.

Small businesses are also feeling the pressure. A survey by Access to Capital for Entrepreneurs found that nearly one-third of independent businesses in Georgia have already experienced significant or moderate price increases due to tariffs. “One day we’re having tariffs, the next day we’re not,” said Victoria Park, owner of Park Pet Supply. “That’s very, very hard for small businesses to navigate.”

Market Volatility and Economic Uncertainty

The broader economic landscape has been rattled by the tariff announcements. The S&P 500 dropped from 5,858.55 on January 2 to a low of 4,982.77 by April 8, reflecting investor unease. Economists at Wells Fargo estimate that the average U.S. tariff rate could jump tenfold to 23%, the highest since 1908, if all proposed duties are enacted.

The uncertainty is also affecting corporate planning. ASML, the world’s largest supplier of chip-making equipment, warned that tariffs are clouding its outlook for 2025 and 2026. Meanwhile, U.S. Treasury Secretary Scott Bessent has expressed optimism about achieving “clarity” on trade deals, but acknowledged that delays and exemptions remain on the table.

A New Era for Consumer Tech?

As the tariff landscape continues to evolve, companies like Back Market are seizing the moment. The surge in demand for refurbished devices suggests that American consumers are willing to adapt—at least temporarily—when faced with steep price increases on new products.

Whether this shift becomes permanent remains to be seen. But for now, the secondhand tech market is thriving, and Back Market is leading the charge.

References

• CEO says his sales tripled when Trump's tariffs hit: Americans have 'a big opportunity' to change how they make big purchases
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