The impact of President Donald Trump’s tariffs is dominating the headlines, prompting concerns about how they may affect everything from grocery bills to investment accounts. While it’s tempting to react to every trade policy shift, not all impacts are immediate or relevant to everyday consumers.
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GOBankingRates talked to Jared Ashworth, Ph.D., an assistant professor of economics at Pepperdine Graziadio Business School, to determine the four questions you should be asking about tariffs and the two things you shouldn’t worry about.
Also see six items frugal people should avoid buying in 2025 due to tariffs.
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The Questions That Matter
Most consumers don’t need to follow every twist in trade policy. However, they do need to understand how tariffs might affect their wallets, savings and investments. Here are some practical financial questions worth asking right now.
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What Should I Be Concerned About Right Now?
Uncertainty is the biggest concern about the tariffs.
“In recent months, there have been significant swings in what the actual tariffs will be,” Ashworth said. “Many of these tariffs could also be rolled back if, for example, a target country changes its trade policy.”
This has caused a lot of uncertainty. “As a result, financial markets have become much more uncertain. Standard advice about risk and uncertainty, like considering your risk aversion or how close you are to retirement, matters even more in this context,” Ashworth said.
Will This Affect What I Pay at the Store?
Many retailers have already or will likely adjust their prices quickly in anticipation of the tariffs. According to Wired, the price of refrigerator staples like apple juice is already increasing, as most apple juice that Americans drink comes from China.
Apple juice is just one of the many goods American consumers count on that will likely become more expensive due to the tariffs.
“The goal of tariffs is to allow domestic firms to charge higher prices and compete with the raised prices of international firms,” Ashworth said.
Should I Make Big Purchases Now?
Consumers are making big purchases in anticipation of the tariffs. For example, sales of cars and motor vehicles parts were up by 8.8% from last year, according to U.S. Census Bureau data.
“Most people won’t be able to gain by making major changes based on broad news,” Ashworth said. “For example, with cars, even though the vehicles currently on lots weren’t directly affected by tariffs, the rush to buy before the tariffs take full effect has driven up prices.”
How Will the Tariffs Affect My Investments?
According to USA Today, the manufacturing, construction, transportation, warehousing, retail and supply chain sectors are most likely to be affected by tariffs and are paring back on hiring.
Ashworth said individuals should consider shifting investments to companies less affected by tariffs, even though the market expectations are already reflected in stock prices.
Healthcare and financial services are among the sectors that are still poised to grow or remain stable, per USA Today.
Questions Not To Worry About (Yet)
Tariffs can feel like a threat to every part of one’s financial life, but not all impacts are immediate or personal. Here’s what to set aside for now.
Will Tariffs Cause a Trade War?
The uncertainty about the impact of the tariffs also means that it’s hard to know what will happen next or how long the effects will last.
“While the U.S. is part of a globally connected economy, imports and exports still make up a relatively small percentage of the GDP (Gross Domestic Product),” Ashworth said. “The idea of a full-out trade war often depends on how it’s framed, which is part of the problem.”
For example, tariffs are viewed as either a measure that protects domestic industries or a policy that punishes countries engaging in unfair trade. “But those goals can be contradictory,” Ashworth said. “If tariffs are a punishment, then the once the country reforms its trade practices, we’re expected to drop the tariffs, potentially ending the protection for domestic industries.”
Can I Outmaneuver These Policies?
It’s easy to feel powerless when trade policy shifts overnight. But for most consumers, the best response isn’t control; it’s adaptability.
“While tariffs can affect exchange rates and relative interest rates, most of those impacts aren’t something everyday people can or should try to take advantage of,” Ashworth said. “Unless you have direct influence over national policy, there’s little you can do to change it. Instead, focus on staying flexible in this period of heightened uncertainty.”
While there isn’t much that can be done when it comes to government policy, consumers can take other actions to protect themselves and their finances. “As with any pressure that raises prices, find ways to reduce consumption and spend less. While tariffs might contribute to a recession, individuals should still prioritize cutting back on spending and increasing savings,” Ashworth said.
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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Sources
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Jared Ashworth, Pepperdine Graziadio Business School
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Wired, “Trump’s Tariffs Are Threatening America’s Apple Juice Supply Chain.”
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US Census Bureau, “Advance Monthly Sales for Retail and Food Services, March 2025.”
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USA Today, “April jobs report preview: As Trump tariffs start, see sectors that are and aren’t hiring.”
This article originally appeared on GOBankingRates.com: I’m an Economist: 4 Questions You Should Be Asking About Tariffs (and 2 Not To Worry About)
