3 Ways To Budget for Trump’s Tariffs
Written by
Brooke Barley
Edited by
Jenna Klaverweiden
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President Donald Trump hasn’t been back in office long and has already made the tariffs he talked about during his campaign a reality. On Feb. 1, 2025, he signed executive orders implementing a 10% tariff on China as well as 25% tariffs on Mexico and Canada, as reported by USA Today. Energy imports from Canada, however, have a lower rate of 10%.
This could have a huge impact on American consumers — and their budgets. For example, last year, of all imported goods to the United States, Mexico and Canada made up 30% of the value, as reported by CNN.
The costs that businesses would incur to have the items shipped over could be passed along to shoppers. Here’s how experts said to protect yourself from potential price hikes.
Also see how Trump doubling down on tariffs could change your finances in 2025.
Take Note of Current Costs
The first step to take when budgeting is to check what prices are currently and what you’re spending. That way, it’s easy to notice when sudden price hikes happen.
“It may be wise for consumers to begin checking the individual costs of items. For one thing, this can help to alleviate the aforementioned sticker shock. Additionally, since the intention of tariffs is to make domestic products more appealing price-wise, consumers may notice a significant difference in the price of individual items depending on where and how they are manufactured,” said Jim Ronan, Ph.D., professor of political science at Villanova University.
Find Alternatives
Brenton D. Harrison, a financial advisor at New Money, New Problems, suggested looking for alternatives once the affected items are identified.
“Tools like unit pricing, which grocery stores use to compare the prices of products based on a standard unit of measurement, can help consumers easily compare their favorite brand’s price to a competitor that might offer savings,” he said.
Pre-Purchase Potentially Affected Items
Harrison recommended stocking up on items from the countries Trump affected.
“Specifically for items that are likely to be financed (e.g., cars, homes), tariffs could increase borrowing costs, meaning those who plan to make these purchases should consider locking in their rates before the price of ownership increases,” he said.
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