The Highest Tariff Rate Since 1934? 7 Legit Ways To Save Money
Written by
Gabriel Vito
Edited by
Jenna Klaverweiden
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According to Yale’s Budget Lab, the average U.S. tariff rate climbed to 17.8% in May 2025, which marks the highest since 1934. It reported that these tariffs are projected to raise prices across a range of goods by up to 1.7%, potentially costing the average household as much as $2,800 this year.
But while tariffs may be out of your control, your spending strategy isn’t. Here are seven smart ways to protect your wallet.
What the Tariffs Actually Impact
Yale’s analysis shows that clothing, footwear, cars and electronics could see short-term price increases of 9% to 15%, with long-term hikes reaching up to 19% for some categories.
“Domestic prices also rise, making everything more expensive regardless of where it is made,” says John Lash, group vice president of product strategy at supply chain platform E2open. “The vast majority of these costs will be passed on to consumers.”
The impact may also hit unevenly. Tariffs tend to place a heavier burden on lower-income households, who spend a greater share of their budget on essentials.
Legit Ways To Save Money
So with potential price hikes coming, how can consumers save money?
Shop Ahead of Price Hikes
Planning to buy a car, laptop or pair of sneakers? It may be smarter to act now. New shipments affected by tariffs could arrive with higher price tags.
Larger purchases, such as vehicles, appliances and furniture, often take longer to show tariff-related price hikes. Dealerships and stores may have several months of existing inventory purchased at pre-tariff prices. In fact, Kelley Blue Book reported that car price increases due to tariffs have been mild so far; however, it expects tariffs to “radically change” car prices in the coming months.
If you’ve been putting off a necessary big purchase, consider buying sooner rather than later before newer, higher-cost inventory hits store shelves.
Look for US-Made or Tariff-Free Alternatives
Products sourced domestically or from countries not subject to new tariffs may be more stable in price. Check product origin labels and consider smaller or local brands.
Doing so could help you avoid products that have seen cost increases.
Buy Refurbished or Secondhand Tech
With electronics among the most impacted categories, certified refurbished devices can offer real savings. Sites like BackMarket or manufacturer-refurbished listings are worth exploring.
Use Cash-Back or Price Protection Tools
Use cash-back apps like Rakuten to earn back a portion of what you spend, and consider using a credit card with built-in perks like extended warranties or purchase protection.
These benefits won’t lower prices directly, but they can help soften the blow if something goes wrong or needs replacement sooner than expected.
Delay Major Purchases If They’re Not Urgent
If you’re seeing that an item you want has increased in price due to tariffs and you don’t need it right now, it may be prudent to delay buying it. Holding off while you wait for prices to settle could be helpful for your wallet.
Buy in Bulk
Stocking up on household essentials like paper products, pantry goods or personal care items can help you sidestep any potential future price increases.
According to Ramsey Solutions, buying in bulk in general can save shoppers money, depending on what they buy. And this could especially be the case if prices increases end up happening.
Watch for Retailer Incentives
Retailers may offer steep discounts to clear pre-tariff inventory. Keep an eye on summer sales, clearance events and limited-time bundles before new pricing rolls out.
Overall, by adjusting when, where and how you shop, you can stay one step ahead of rising prices. Smart, proactive choices can help you navigate rising prices and keep more money in your pocket.
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