President Donald Trump has unveiled his latest tariffs, and they could have significant implications for your wallet. What can households do in the face of so much uncertainty? Here’s what you need to know:
Expect Impact Inequities
Understand, tariffs will not impact all Americans equally. Low-income families in particular will feel the costs since they spend a larger share of their income on essential goods – whether it’s food or other basic products.
There will also be inequities in job losses. Even though in the long term President Trump believes tariffs will bring jobs back to America, in the short run, as corporations suffer, layoffs will more likely come in low-paying jobs first.
Can I Do Anything to Prepare?
Stocking up on what you know you need is a start — but with limits.
“If there are things that you’re buying on a consistent basis — week to week, month to month — I think it’s not a bad idea to try to stock up in advance,” Stillwagon said. But it’s important to avoid panic buying like that seen at the start of the COVID-19 pandemic, he and others added. That could cause shortages to emerge sooner and prices to go up faster.
You also don’t want to buy a bunch of items that will eventually go to waste.
It may also be time to look for substitutes. From electronics to clothing, consider:
- more affordable secondhand or refurbished options.
- If you haven’t already done so, start comparing prices of name-brands versus “private,” or generic, labels in major retailers.
- Others may turn to at-home solutions, he said, such as growing their own vegetables.
Overall, experts say you’ll need to evaluate your budget and consumption
Is there anything to watch out for in the coming months?
Consumers should be on the lookout for even greater use of so-called “shrinkflation” on the grocery aisle. Shrinkflation is a tactic consumer goods manufacturers use to hide cost increases by changing the design of packaging.
“Consumers can prepare for the inflation that the tariffs are likely to exacerbate by getting into the habit of checking the unit price of items on the grocery shelf,” said John Breyault, vice president of public policy, telecom and fraud at the National Consumers League. “While not all states require it, where it is required, consumers can more easily compare the per unit price of one item — cereal, for example — to another item.”
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