Tariff Actions in Trump’s First 100 Days Could Affect Your Finances

During the first 100 days of President Donald Trump’s second term, many of his economic actions focused on widespread tariffs, which could affect your budget.

Trump said his main goal with tariffs is to bring manufacturing jobs back to the U.S. However, he acknowledged that ‘there’ll be a little disturbance’ caused by his tariffs.

Some business leaders say they plan to pass on the costs of the new import taxes to their consumers. Borrowing costs have remained elevated as the Federal Reserve waits to see how tariffs affect the economy.

Big-Ticket Items Will Get More Expensive

Costs related to the most significant portions of your budget are expected to increase as tariffs take a toll.

Trump’s tariff on all imported cars is expected to increase the cost of buying and repairing cars. Even with the recent softening, auto tariffs are estimated to add more than $5,000 to the price of non-luxury cars, according to a recent analysis from Jerry, a car insurance comparison app. That number is even higher for luxury vehicles, which are estimated to be $21,000 more under tariffs.

Similarly, the cost of building and repairing houses and renting homes will likely rise due to various tariffs applied to imported lumber, stone, copper, and appliances.

In turn, car and home insurance costs are expected to increase, as tariffs likely mean increased claims costs—expenses that insurers will eventually recoup from consumers.

Other Costs Are Also Likely to Increase

It’s not just big-ticket items that will get more expensive.

In particular, prices on small electronics like toasters, phones, and batteries are expected to increase. That’s because many of those items are made in China, the U.S.’s trading partner with the highest tariffs.

Prices of bigger appliances, like refrigerators and hot water heaters, are also expected to increase for the same reason. Other smaller products, such as beauty and skin products, plastic items, toys, and clothing, are expected to become more expensive.

One place where you will likely get a reprieve from tariffs is in your grocery bill.  

While most fresh fruit and vegetables in the U.S. are imported, a majority are imported from Canada and Mexico. Your food is exempt from the 25% tariffs on the neighboring countries because it falls under the USMCA trade agreement.

Interest Rates Are Still High

The Federal Reserve has held its influential federal funds rate steady so far this year, as it waits to see what Trump’s on-again, off-again tariffs will do to the economy.

That’s important because it can affect your borrowing costs on all kinds of loans, including credit cards, auto notes and personal loans.

Fed officials said they could cut rates as soon as June if the economy shows signs of deterioration. However, the Fed must balance keeping inflation low and employment high. Economists say Trump’s tariffs could increase both inflation and unemployment, meaning the central bank will have to decide which problem to tackle first.