Member Sign In

Another week, another headline about tariffs. And maybe, after months of mixed messages, you've tuned it out.

After all, didn't Trump pause those tariffs back in the spring? Didn't the market bounce right back afterward? Didn't everyone decide this was just posturing?

That's exactly the problem.

Because while Wall Street seems convinced this is all bluster, President Trump keeps insisting the tariffs are happening — and as of now, they're scheduled to kick in August 1. Not quietly, either. We're talking tariff rates up to 50% on some countries, with threats of even broader hikes to follow.

And if that happens? It will hit your wallet.

Hard.

Even if the market seems numb. Even if you don't think you buy imported goods. Even if this whole trade war feels like just another round of political theater.

Because tariffs — whether they stick for six months or six years — have real, measurable effects on prices, supply chains, inflation, and even jobs. And while there's always a chance the president changes course again, it's wise to prepare for what he says is coming.

So, what's actually going on? And more importantly, what should you do about it?

Today, we're diving into tariffs — what they are, why they matter, and most importantly, how you can prepare for a potential impact on your daily expenses.

Aug. 1 Is Approaching — And Tariffs Could Hit Your Wallet Hard

A tariff is basically just a tax that one country adds onto the price of specific goods sold by another country. When the U.S. government imposes tariffs on products from other countries, businesses that rely on those imports have two options:

Absorb the extra cost themselves (unlikely).
Pass those costs onto consumers (very likely).

And let's be real — businesses aren't in the habit of voluntarily losing money.

So what happens next? Prices rise.

A car that might have cost $40,000 last year could cost $46,000 next year because of tariffs on imported parts. Groceries, electronics, and household goods — anything imported or produced using imported components — could see price hikes.

This isn't just a hypothetical. We've seen it happen before.

During past trade disputes, companies raised prices on everything from washing machines to soybeans. Inflation ticked up. Supply chains scrambled. Some industries took a hit, while others (like domestic manufacturing) saw a boost.

Maybe you're reading this and thinking, "Eh, I don't ever buy things from other countries; this really isn't a big deal for me." Maybe you're even someone who goes out of their way to shop locally and only buys things made by companies and manufacturers based in the good ol' U.S. of A! The bad news is, you'll probably still be affected by tariffs.

You see, tariffs don't just affect people and companies buying imported goods — they create ripple effects throughout the economy, influencing everything from grocery prices to stock market performance. When businesses face higher costs on imported goods, they either absorb the impact or — more often — pass those costs onto consumers. That means the cost of products we use every day can quietly increase, sometimes dramatically.

Take something as simple as a refrigerator. Many brands — even those based in the United States — use imported steel and imported electronic components. When those materials get slapped with tariffs, the company making the refrigerator suddenly has to pay more for them, which means it costs the company more to keep producing the same refrigerator. To recoup the extra money spent on the more expensive materials, the company will simply start charging more for its refrigerators, which is how everyday consumers like you and me end up paying higher prices.

Because the recent tariffs are extremely broad and focus on some of the United States' three largest trading partners, a staggering number of goods and products will be impacted. Over time, these added expenses across industries can lead to inflation, making everything from gas to groceries more expensive — even if it's not imported.

Another potential impact? Job stability. While tariffs are often introduced with the goal of protecting domestic industries, they can also lead to downsizing in sectors that rely heavily on global trade. Construction firms that use imported lumber, car manufacturers that use imported parts, and retailers that depend on foreign-made goods may all find themselves cutting costs — and sometimes, that means cutting jobs.

Not all industries suffer equally — domestic manufacturers and companies producing U.S.-made goods might benefit — but for the average person, tariffs often lead to higher costs.

The big question now: How do you prepare your finances to weather this storm?

To help you navigate these changes, I've outlined key financial moves that can help you stay ahead of tariff-related price increases. From when to buy big-ticket items to how to avoid unnecessary debt, these moves will help you make smart, strategic choices so you're not caught off guard.

6 Smart Money Moves to Stay Ahead of Rising Prices

The worst thing you can do right now is ignore these changes and assume they won't impact you. But here's the good news: Tariffs don't have to derail your budget or lifestyle. With a few smart adjustments, you can stay ahead of rising costs and keep your finances on track.

1. Lock in Major Purchases Before Prices Go Up

If tariffs are driving up prices, one of the smartest moves you can make is staying ahead of the increases. If you were planning on making a big-ticket purchase — cars, appliances, home renovation materials — in the near future, you may want to consider buying sooner rather than later. If the tariffs stay in place, waiting too long could mean shelling out significantly more down the line.

2. Stock Up on Certain Essentials (But Don't Panic Buy!)

Stocking up on essentials can also be a wise move, but it's important to approach this strategically. Focus on non-perishable goods and everyday household items that have longer shelf lives. Avoid overbuying in a panic, especially when it comes to perishable foods or products that could see price corrections later. Buying a few extras of essential items? Smart. Hoarding like we're about to see a repeat of the 2020 toilet-paper-apocalypse? Not so much.

3. Look for Domestic Alternatives When You Can

Looking for alternatives can also help ease the burden. American-made goods, while not always cheaper, can be an effective way to sidestep the effects of tariffs on imports. That might mean choosing a domestically assembled car over an imported one, buying produce grown in the United States, or supporting local manufacturers for furniture and home goods.

4. If Inflation Hits, Reassess Your Budget

When everyday goods cost more, some people rely on credit cards to maintain their lifestyle. But this leads to a dangerous spiral, as higher debt and higher interest rates can lead to financial disaster.

If rising prices start stretching your budget, reassess your spending. Cutting back on non-essentials — subscription services, impulse purchases, unnecessary dining out — can free up funds for necessities. Keeping an eye on inflation and adjusting your financial plan accordingly will help you avoid financial strain.

5. Strengthen Your Emergency Fund

A solid emergency fund is also crucial in times of economic uncertainty. If layoffs hit tariff-affected industries, having three to six months' worth of expenses saved can provide a financial safety net in case of job disruptions.

6. Consider Inflation-Resistant Investments

Stocks can also be affected by tariffs, with certain industries taking bigger hits than others. But that doesn't mean you should move your portfolio to cash! If inflation rises, keeping too much cash means your purchasing power shrinks over time.

Commodities like gold and oil tend to hold value during inflationary periods, making them potential safe havens. Treasury Inflation-Protected Securities (TIPS) can also be a useful tool in a portfolio, as they adjust in value alongside inflation. If stock market volatility picks up, diversifying investments and consulting with a financial advisor might be wise steps to take.

The Key to Surviving a Tariff Economy? Smart, Fast Action

Tariffs and trade policies may fluctuate, but sound financial planning remains essential. Taking action now — whether by securing big purchases, adjusting your budget, or rebalancing investments — can help you stay ahead of potential economic shifts.

While we can't predict exactly how trade policies will evolve, we can prepare. Being informed, flexible, and strategic with your finances is the best way to navigate an economy where tariffs play a role. The goal isn't to panic — it's to position yourself wisely so that, no matter what happens next, you're ready.