The very public feud between President Donald Trump and Elon Musk is bringing up renewed concerns about tariffs. According to The Hill, Musk wrote that Trump and the tariffs will cause a recession.
While the Trump administration has said the tariffs are needed to help the American economy, many families are worried about how the roller coaster negotiating will impact their budgets.
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GOBankingRates asked some financial experts to describe how your money is being affected by tariffs.
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Hidden Price Increases in Everyday Items
Andrew Lokenauth, money expert and owner of BeFluentInFinance, said basic things like soap and cleaning supplies cost more because of ingredient markup.
“I’ve watched prices climb steadily at my local stores,” Lokenauth said. “Just picking up basic home goods costs me about 20 to 30% more than it did before these tariffs kicked in. The other day, I noticed my regular brand of kitchen appliances jumped $75 — a direct result of manufacturing costs getting passed down to us consumers.”
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Increased Budget Pressures
“Budgeting pressure from tariffs and higher-priced goods tends to impact Americans differently based on their income levels and spending habits,” said Vince DeCrow, founder of RISE Investments. “However, many Americans have already started delaying large purchases, downgrading vacation plans and cutting other discretionary spending on things such as clothing, electronics and eating out.”
Strategic Timing
Lokenauth recommends strategic buying to avoid price spikes.
“Timing purchases has become crucial,” Lokenauth said. “I track price trends and stock up when things dip.”
Retirement Challenges
“If you’re nearing retirement or retired and depending on a fixed income, you’re likely going to be more heavily impacted by Trump’s tariffs,” DeCrow said. “To plan for this, you can help offset the higher cost of goods by reassessing your budget, prioritizing essential expenses, buying in built at discount retailers and proactively taking advantage of more senior discounts.”
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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This article originally appeared on GOBankingRates.com: Tariffs vs. Your Paycheck: 4 Ways Trump’s Roller Coaster Negotiating Is Impacting Your Budget
