5 Ways Tariffs Could Hit Your Wallet in 2026 — and How To Prepare
Written by
Gabriel Vito
Edited by
Zuri Anderson
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Everyday costs like groceries, car repairs and insurance continue to strain budgets even as overall inflation slows.
That gap helps explain why tariffs matter right now, because they tend to filter through the economy gradually rather than showing up as obvious price increases.
Here are five ways tariffs could hit your wallet in 2026, and how to prepare.
1. Everyday Prices
Tariffs do not always appear as obvious sticker-price increases. More often, they reduce value.
Federal Reserve Bank of St. Louis research shows that tariffs tend to pass through to consumer prices over time, meaning higher costs are often passed on to consumers rather than absorbed by businesses. For shoppers, that can look less like a sudden price jump and more like smaller package sizes, fewer discounts or higher shipping fees.
Marty Bauer, director of partnerships and an e-commerce expert at Omnisend, said tariff-related costs are rarely itemized at checkout, so consumers often feel the pressure before they understand the cause.
To stay ahead of tariffs, track unit prices instead of relying only on shelf prices. Compare retailers and stay flexible on brands, especially for items you buy often.
2. Grocery Bills
Food costs are especially sensitive because grocery spending is ongoing.
Even when food is processed or packaged in the U.S., many products rely on imported inputs such as cocoa, coffee, produce, and packaging materials. When those inputs become more expensive, the added cost can eventually show up at the store.
Data from the U.S. Department of Agriculture show food-at-home prices were 2.7% higher in August 2025 than a year earlier, though not evenly across categories. Tariffs are not the only reason grocery prices increase, but they are one of several factors adding pressure.
Because grocery spending happens week after week, small increases can add up quickly.
In order to keep your food costs low, substitute tariff-exposed items when possible, buy nonperishables in bulk and be more selective about higher-cost treats.
3. Transportation Costs
You do not need to be shopping for a new car to feel the effects of tariffs.
Many auto parts are imported, which can raise the cost of repairs and maintenance. Bureau of Labor Statistics (BLS) data show the motor vehicle maintenance and repair index rose about 6.9% over the past year, outpacing the roughly 2.7% increase in overall consumer prices.
That means routine repairs such as brakes, electronics or suspension work may cost more than expected, even if vehicle prices themselves stabilize.
Tariffs are not the only reason repair costs are rising, but they add pressure in an already tight market.
Plan for higher repair bills, keep up with routine maintenance, and delay nonessential upgrades when possible.
4. Housing and Home Insurance
Housing-related costs are one area where tariffs can affect household budgets indirectly.
Many construction materials used in homebuilding and repairs are imported. When those materials become more expensive, rebuild and replacement costs rise. Insurers base premiums on those replacement costs, which helps explain why rates can increase even without a claim.
Construction industry data show that material and labor costs now account for a larger share of home prices than in recent years, reflecting higher rebuild costs, according to the National Association of Home Builders. BLS data, accessed through the Federal Reserve Bank of St. Louis, also show household insurance costs have continued to rise.
“Insurance pricing closely follows replacement value,” said Melanie Musson, a finance expert with Clearsurance.com. “As rebuild costs rise, premiums tend to rise.”
Tariffs are not the sole driver of higher housing or insurance costs. Labor shortages, weather-related losses and broader inflation also play major roles.
Make sure to review your homeowners insurance coverage limits annually to make sure they still reflect replacement costs. Plan for gradual premium increases.
5. Discounts and Consumer Choice
Tariffs can also affect how retailers operate, not just what shoppers pay.
Small businesses often have less ability to absorb higher costs or negotiate with suppliers. When expenses rise, they may respond by pulling back on promotions, carrying fewer products or tightening return policies.
Bauer said smaller retailers are often hit hardest because they lack the pricing power of large chains. When costs rise, discounts and product variety are often the first things to go.
For consumers, that can make shopping feel worse even when prices do not rise dramatically.
To prepare, shop earlier for planned purchases, expect fewer deep discounts and avoid last-minute buying when possible.
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