US President Donald Trump has announced new tariffs on imported goods, which could significantly impact consumers’ wallets. The move is part of the ongoing trade wars with other countries, and it’s expected to increase prices for everyday items.
Experts warn that these tariffs will have uneven effects, particularly on low-income households. They argue that tariffs are taxes on foreign products, which companies buying abroad face higher costs. These costs are typically passed on to customers in the form of higher prices.
The tariffs could lead to inflation, weakened economic growth, and increased inequality. Low-income families may struggle more due to their limited savings and higher expenditure on essential items like clothing and groceries. The tariffs will also affect the home buying market, with predicted price increases for building materials.
To prepare for the impact, consumers can stock up on essentials while avoiding panic buying. They should also look for substitutes, such as secondhand or refurbished options, and compare prices of different products. Experts advise checking unit prices on grocery shelves to anticipate “shrinkflation” – a tactic where companies change packaging design to hide cost increases.
The long-term effects of the tariffs are uncertain, but experts emphasize that this is not a temporary issue. It’s essential for consumers to evaluate their budget and consumption habits in the coming months as they navigate the new economic landscape.
Source: https://www.pbs.org/newshour/nation/how-trumps-latest-tariffs-could-affect-your-personal-spending