If you’re worried about what tariffs could do to your wallet, your fears aren’t unfounded. On July 8, the 90-day reciprocal tariff pause will end, potentially causing the cost of imported products to skyrocket.
So, should you rush to buy everything on your shopping list before the cost of goods surges? Maybe, maybe not.
We’ll shed some light on the current tariff situation and offer practical consumer guidance. That way, you can make an informed decision that reflects broad economic trends and your unique circumstances.
What you need to know about the 2025 tariffs
Every time you check your newsfeed, there’s an updated story about tariffs, which are taxes levied on goods manufactured by other countries.
Here’s what’s current as of this writing:
- President Trump is imposing a 10% tariff on most United States trading partners.
- Imports from China are currently subject to an up to 145% tax.
- On April 9, 2025, Trump ordered a three-month pause on higher reciprocal tariff rates for all trading partners except China.
While tariffs can cause imported product prices to rise, they can also impact the cost of domestically manufactured items because the United States often buys raw materials from other nations.
For instance, about one-fourth of the steel used in American production gets imported. Additional taxes levied on the material could make your next domestically produced appliance, automobile or cutlery set more expensive.
It’s impossible to know exactly how the taxes on imported products and raw materials will impact your finances. However, experts can venture an educated guess.
According to the Yale Budget Lab, price hikes due to tariffs are projected to cost the average household $3,800 annually.
That’s not chump change, considering the country’s median annual household income is roughly $75,000.
Products to buy before tariffs drive up prices
In an effort to save money, many consumers plan to purchase foreign goods before the tariff pause expires.
Some of the products that may get significantly more expensive later this year include, but aren’t limited to:
- Cars (and automotive-related products, such as tires)
- Tech items (i.e., gaming systems, televisions and computer accessories)
- Appliances (i.e., washers, dryers and refrigerators)
- Home goods (i.e., vacuums, mattresses and furniture)
- Tools (i.e., drills, saws and wrenches)
- Clothing (particularly jeans and name-brand sneakers)
- Specialty food (i.e., coffee, spices, oils and chocolate)
Note: High tariffs on cell phones and computers have been paused temporarily. However, prices for those items could soar once the reprieve ends.
Purchases you can postpone
While you may be tempted to visit your favorite retailers or shop online, you shouldn’t buy anything just to beat the tariffs. If you weren’t already planning to purchase an item, you should probably keep your money in the bank.
Impulse or panic buying can cause you to spend over your budget or take on debt. Plus, if enough shoppers rush to clear store shelves, we could see product shortages, which could, in turn, cause prices to inflate.
We saw this happen when some consumers purchased more toilet paper than they could possibly use during the pandemic.
In addition, the tariff landscape changes nearly every day. Stockpiling foreign goods now may seem like a good idea. However, if the right trade deal gets negotiated tomorrow, you could be stuck with items you really don’t need, with that cash better spent elsewhere.
Smart strategies to save money amid tariff uncertainty
Higher tariffs could put a strain on the family budget. Fortunately, there things you can do to stretch your dollars, including:
- Buying domestically produced goods
- Repairing instead of replacing big-ticket items, such as cars or appliances
- Comparing prices across several retailers
- Purchasing gently used clothing, electronics and furniture
- Choosing store-brand goods
- Using coupons (physical or digital)
- Downloading money-saving or budgeting apps, such as Capital One Shopping to find deals, or Fetch to earn rewards
- Signing up for store loyalty programs
You could also shop with a rewards credit card to earn points or cash back. Some cards feature a high reward rate when you use them in certain places, like the supermarket or office supply store. Others offer a steady return for all purchases.
You must pay your bill in full each month to make this strategy worth it. Otherwise, interest charges will wipe out the value of your rewards.
Remember: In times of economic uncertainty, you should double down on personal finance basics. If you stick to your budget, reduce non-essential spending, beef up your emergency fund, pay down debt and keep investing (if possible), you’ll likely come out of this situation alright (and potentially ahead!).
