Whether you believe in tariffs or not, they were signed into law and will take effect almost immediately against Canada, Mexico and China. While the percentage of tariffs placed on each country is different, they are sure to increase the price of items you purchase. But let me set the proper context and perspective. Mexico for example is a major supplier of everyday staple products such as fresh produce, tomatoes, bell peppers, strawberries and avocados. Increased prices on these items make them less affordable for consumers, which only reflects one economic impact. The economic impact of un-affordability when it comes to healthier options, can only exacerbate consumers being exposed and subject to greater health challenges such as hypertension, diabetes, strokes and heart diseases. But let’s look at how they will impact your pocket book.
Shopping Considerations
Middle class consumers shop at big box stores such as Walmart and Target for everyday needs and wants. These stores, while not having any foreign presence, usually import lots of their goods from countries on the tariff list. This now means they will pass the tariff cost onto their consumers. What consumers should consider and will have to research now is not only whether the company is domestic of foreign, but the source of their goods supplies or inventory. There are some businesses that are able to change their import or supplier location in order to avoid a tariff being placed on their imported goods, and this can hold the cost of those items steady for consumers. To some degree consumers will have to become experts on the manufacturing and supply chain of goods and products to mitigate monthly increases in their budget for items purchased.
Be prepared in this tariff war to change your purchase of consumer brand items. In this new economic war, brand name or quality may have to be compromised in order to stay within your budget. At this moment you will have to review your budget and make some hard decisions. But reviewing your budget will not be sufficient in addressing this unexpected cost. Coming up with a plan to address tariff cost should they be increased or remain in place for a longtime cannot be addressed by just stop gap measures here or there. Addressing unexpected tariff costs will have to be part of an over all strategy and plan.
Tariff Impact on Investments
Tariffs can be complicated and depending on who you ask there can be mixed impact on your investment portfolio. What seems to be trending in this moment is that investing should be focused on domestic companies whose supply chains are domestic. There are some other sectors or companies that may not be severely impacted such as domestic energy companies who may now be required to produce more as prices of imported energy cost may become prohibited. Another example may be a domestic bank. Most banks have foreign and international links which may be affected by tariffs. Perhaps there is a bank that earns revenue through lending to consumers and credit cards with no foreign links my thrive in this environment. It is prudent to follow the tariff changes and impact in considering investing as the policy remains fluid and ever changing.
WHAT’S UP! Today’s What’s Up is about Valentine’s Day. Traditionally, most people spend Valentine’s gifts on flowers and candy. According to the National Retail Federation, in 2024 an estimated $14.2 Billion was spent on Valentine gifts. However, this year I am suggesting a not so sexy option. Replace purchasing candy and flowers by acquiring life insurance in the event something happens to you. That way your sweetheart will always be taken care of and protected. And that’s what’s up!
Ruthven R. Phillip, Esq., is a tax attorney, Stewardship and Philanthropy Ministry Assistant, and CEO of Give2Getrich, LLC. Give2Get Rich, LLC 2025 All Rights Reserved. Any distribution or reproduction of part or all of the contents in any form is prohibited.
