Financial Wellness
How Will Tariffs Impact Your Wallet?
Recent U.S. trade policies are shaking up the economy—and your wallet. In April, President Trump announced sweeping tariffs designed to support U.S. manufacturing.
Tariffs are taxes placed on imported goods at the border, and they're hitting products from many countries hard. For example, there's now a 145% tariff on Chinese goods and a 20% tariff on imports from the European Union in addition to existing tariffs of 25% on steel and aluminum and 25% on car imports. Goods from other countries may also be affected.
Unfortunately, tariffs often mean higher prices for you as a consumer. Importing companies pay these taxes upfront but usually pass them along by raising prices or cutting back on inventory, leaving you with fewer choices at higher costs.
It's natural to be concerned when the market drops. But you shouldn't panic. Some volatility is expected and staying focused on long-term goals can help keep your investment strategy on track.
Farmers' markets can be great too—just know that prices might spike there as demand for fresh, seasonal produce goes up.
"The rising cost of produce due to tariffs shows just how much global policy affects your weekly grocery bill," says Baldwin.
Think "buying American" will help? Not always. U.S. companies may raise their prices too—to stay competitive or because they're stockpiling supplies. Either way, it can mean higher prices and even shortages.
"There's no winning a trade war," says Erica York, Vice President of Federal Tax Policy at the Tax Foundation.
With the ongoing uncertainty surrounding tariffs and their impact on the U.S. economy, having your money in a stable, member-focused institution like Tower is more important than ever. Learn more about how we can support your financial well-being—no matter what the economy throws our way.
At the time of publication of this article, most experts think tariff uncertainty will stick around. Countries are still negotiating with the Trump administration, and retaliatory tariffs are still on the table. According to analysts at Wedbush, "This is probably just the start of a negotiation—and these rates likely won't stay this high forever."
Jeff Buchbinder, Chief Equity Strategist at LPL Financial, adds: "Once negotiations show real progress and rates start dropping, we should see the market stabilize—as long as there's no sign of more retaliatory tariffs."
As negotiations play out, keep track of the latest updates. Here are some live news sources to stay informed:
Tariffs are taxes placed on imported goods at the border, and they're hitting products from many countries hard. For example, there's now a 145% tariff on Chinese goods and a 20% tariff on imports from the European Union in addition to existing tariffs of 25% on steel and aluminum and 25% on car imports. Goods from other countries may also be affected.
Unfortunately, tariffs often mean higher prices for you as a consumer. Importing companies pay these taxes upfront but usually pass them along by raising prices or cutting back on inventory, leaving you with fewer choices at higher costs.
The Lead-Up
Tariffs have gone up faster and higher than Wall Street expected this year. Here's a quick snapshot of the major changes in 2025, according to AARP:- Feb. 4: 10% tariff against China on top of the pre-existing 10% tariffs levied during Trump's first term
- March 4: 10% additional tariff Chinese imports
- March 12: 25% tariff on steel and aluminum imports from all countries
- April 3: 25% tariff on all imported vehicles
- April 5: 10% universal tariff on all U.S. trade partners, with higher tariffs on dozens of countries
- April 9: Reciprocal tariffs on dozens of countries, including a 104% tax on Chinese imports, a 20% tax on imports from the European Union and a 46% tax on imports from Vietnam.
- April 9: The president paused higher import duties for dozens of countries for 90 days but hiked levies on China to 145%.
What This Means For You
It's tricky to predict exactly how much prices will rise, but here's the reality:- 60% of vegetable consumption in the U.S. comes from Mexico
- 25% of U.S. crude oil comes from Canada
- 80% of toys sold here are made in China. If those paused tariffs come back, expect all these things to cost more.
- Cars (new and used) and car parts
- Car insurance
- Beer, whisky, wine and other spirits
- Houses (Lumber and building construction material)
- Maple syrup
- Fuel (crude oil)
- Avocados and other fresh produce
- Shoes
- Toys
- Electronics, appliances, smartphones
- Seafood
- Coffee
It's natural to be concerned when the market drops. But you shouldn't panic. Some volatility is expected and staying focused on long-term goals can help keep your investment strategy on track.
How to Brace For Rising Costs
Even with the pause, prices are expected to rise. Forbes contributor Taylor Baldwin recommends shopping smart—go for bulk retailers like Costco or Sam's Club to save on groceries, electronics, and home goods.Farmers' markets can be great too—just know that prices might spike there as demand for fresh, seasonal produce goes up.
"The rising cost of produce due to tariffs shows just how much global policy affects your weekly grocery bill," says Baldwin.
Think "buying American" will help? Not always. U.S. companies may raise their prices too—to stay competitive or because they're stockpiling supplies. Either way, it can mean higher prices and even shortages.
"There's no winning a trade war," says Erica York, Vice President of Federal Tax Policy at the Tax Foundation.
Staying Informed
Tariffs can be unpredictable—sometimes they're on, sometimes they're off. Recent discussions about the trade war have been filled with predictions, percentages, and political posturing.With the ongoing uncertainty surrounding tariffs and their impact on the U.S. economy, having your money in a stable, member-focused institution like Tower is more important than ever. Learn more about how we can support your financial well-being—no matter what the economy throws our way.
At the time of publication of this article, most experts think tariff uncertainty will stick around. Countries are still negotiating with the Trump administration, and retaliatory tariffs are still on the table. According to analysts at Wedbush, "This is probably just the start of a negotiation—and these rates likely won't stay this high forever."
Jeff Buchbinder, Chief Equity Strategist at LPL Financial, adds: "Once negotiations show real progress and rates start dropping, we should see the market stabilize—as long as there's no sign of more retaliatory tariffs."
As negotiations play out, keep track of the latest updates. Here are some live news sources to stay informed:
Resources: Tax Foundation, Money Talks News, Cable News Network
