Trump Doubles Down on Tariffs: How This Will Change Your 2025 Finances
Written by
T. Woods
Edited by
Angela Corry
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Now that President-elect Donald Trump’s inauguration is just days away, many Americans are financially bracing themselves for the incoming tariffs he’s promised to implement against countries that import goods.
Find Out: 4 Unusual Ways To Make Extra Money That Actually Work
Trump has suggested imposing a 25% tariff upon all imports from our trading partners Canada and Mexico until he feels they have curtailed illegal immigration into America, as well as the smuggling of drugs such as Fentanyl across their borders. Further, Trump has also mentioned an additional 10% tariff upon any additional tariffs on imports from China (he has already promised a 60% tariff on China, per Reuters).
A likely consequence of Trump’s tariffs (as was the case in his first administration) will be price hikes at various grocery and retail stores. Despite Trump declaring that “the most beautiful word in the dictionary is tariff,” the import tax comes with consequences. Specifically, costs shouldered by consumers — if and when Trump imposes tariffs on foreign importers, those importers will raise their prices to make up the difference. In turn, the American retailers and grocers who purchase those imports at a higher price then spike the costs of those items in their stores, pushing the import price hikes onto the consumer.
As a consumer, this could change your 2025 finances greatly. The Center for American Progress has estimated that the average American family will face $2,500 in additional costs due to the China tariff alone, and that inflation will increase by at least 1%. Elsewhere, the Tax Foundation has projected that 825,000 jobs will be lost due to tariffs, coupled with a 1.1% in American Gross Domestic Product.
ThirdWay noted that Americans should expand their budgets to plan to pay at least an additional $185 per year on groceries and a whopping $551 more per year at big box stores such as Target, Walmart, Costco, Home Depot, Lowe’s, etc. While Trump is adamant in his belief that tariffs with fuel American businesses, even he has recently noted that he “can’t guarantee” consumers won’t pay extra as a consequence of taxes on imports.
As such, Americans can expect to be spending quite a bit more in 2025, increasing their grocery and retail budgets, and potentially even facing job loss if theirs is one of the 825,000 positions that will be lost due to tariffs.
More From GOBankingRates
