Bill Clinton tried to explain tariffs to Trump 24 years ago, but 'he didn’t hear what he didn’t want to.' Here's how they really affect the economy

How to cope with tariff fallout

The president has posted to Truth Social that “tariffs have made our Country Rich, Strong, Powerful, and Safe.” But economists and state officials have raised concerns that tariffs hurt the consumer, largely due to many imported goods charging higher prices, which can eat into the wallets of businesses and households.

Inflation is 3.7%, year on year, according to the Bureau of Labor Statistics, while gas is up an eye-watering 34%. Economists say the Iran war is the biggest cause of the squeeze, especially when it comes to fuel, but tariffs have also played a role in the cost-of-living crisis.

As you map out your budget, it’s a good idea to expect prices for common household goods to continue rising. If you are struggling to keep up with rising costs, it might be a good time to start making swaps or cutting out certain purchases. For example, the fast-rising prices of household furniture might mean that making due with your current couch is what works for your budget. Or opting to swap out ground beef for a less expensive alternative.

As an investor, the changing reality for businesses could lead to varying returns. For example, companies with domestic supply chains and in-country operations might outperform companies that depend more heavily on imports. Diving into the details of a particular company’s operations to confirm they are optimized for the current conditions might make sense before choosing to invest your hard-earned dollars.

As the data continues to shift, the most practical approach is to stay attentive to how prices are moving in your own community, keep some flexibility in your budget and investments, and prepare for a landscape where the economic impact of tariffs may evolve long before the political debate around them is resolved.