Dave Ramsey Explains 3 Ways Trump’s Tariffs Could Affect Americans and What To Do

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In a recent episode of “The Ramsey Show,” personal finance expert Dave Ramsey and cohost Ken Coleman tackled a big-picture economic issue that might hit closer to home than many people think: tariffs. In response to a listener’s question about how President Donald Trump’s proposed tariffs might affect everyday Americans, Ramsey broke it down in his usual no-nonsense style, and the takeaway was clear: Tariffs aren’t just political talking points. They affect your wallet.

While tariffs might seem like something only economists and politicians need to worry about, Ramsey made it clear that when tariffs go up, everyday people are the ones who end up paying more.

Here’s how he says it could affect you and what you can do to stay ahead of it.

Higher Prices on Everyday Goods

Ramsey explained that while tariffs are technically taxes placed on imported goods from other countries, the cost doesn’t stop at the border. When American companies import products that now carry a tariff, they absorb the extra cost and then pass it on to the consumer.

In other words, if tariffs go up, you’re likely to feel it in your grocery bill, home improvement purchases, or even electronics. Whether it’s appliances, electronics, or even groceries, you’ll likely see higher prices if tariffs go into effect.

“Companies do not eat taxes,” Ramsey said. “Corporate taxes are built into the price of the item you buy.”

Even if you’re not directly involved in international trade, you’ll feel the ripple effect at the cash register.

Tariffs Already Go Both Ways, but Not Equally

Ramsey pointed out that countries like Mexico already charge heavy tariffs on U.S. goods. For instance, in April 2024, Mexico announced it would add a tariff ranging from 5% to 55% on some imports, PwC reported. That means a $1,000 appliance shipped from the U.S. becomes much more on the other side of the border.

Meanwhile, Mexico has been able export goods to the U.S. without facing the same penalties, the AP reported.

Trump’s proposed tariffs aim to even that out, but in the meantime, Americans could see rising costs on Mexican or Canadian imports.

It May Be a Negotiating Tactic

Ramsey emphasized that Canada and other countries with strong trade ties to the U.S. may have more to lose. For example, Vietnam has a massive trade surplus with the U.S. — meaning the U.S. imports much more than it exports. If tariffs were implemented on Vietnamese goods, it could disrupt that relationship more than it would hurt American consumers.

Still, Ramsey noted that tariffs are often a negotiation tool. His opinion expressed in the video — which was posted in February 2025 — was that Canada and Mexico may never actually face long-term tariffs. Instead, these moves may be designed to push for fairer trade agreements.

“Nobody wants to get in a trade war,” Coleman added.

If this negotiating tactic eventually works, the trade war could ease and prices could settle.

You Can’t Control Tariffs, But You Can Control Your Finances

While all of this might sound overwhelming, Ramsey urged listeners not to panic.

“Don’t act on worries that haven’t happened,” he said. If it starts “messing with your wallet, then I would start making some adjustments to offset.”

His advice? Focus on the things you can control. Build a strong financial foundation. Pay off debt. Stick to a budget. Ramsey explained that people who are debt-free tend to weather financial storms like inflation and trade changes much more easily.

So What Should You Do?

Here’s a quick checklist inspired by Ramsey’s advice:

• Focus on getting out of debt.
• Build up an emergency fund.
• Don’t panic over political headlines.
• Monitor your spending, but don’t overreact.
• Stay flexible and ready to adjust if prices rise.

Tariffs may sound like a political issue, but they can have a very real effect on your day-to-day spending. Ramsey wants Americans to stay informed, but not fearful. If you stick to solid financial principles, you’ll be in a much better position to handle whatever comes your way.

Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.

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