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Tariffs. Whether you approve of them or not, they may be a tough pill to swallow.

The stock market has reacted severely, economists are raising the odds of a U.S. recession, and the Federal Reserve says both inflation and unemployment could get worse.

President Trump warned it won’t be easy, even though the end result will be worth it, he’s said. Some businesses have already started introducing tariff surcharges.

So leaving the politics out of it, what should households expect in terms of impact?

An additional $4,689 in costs a year, according to new estimates from Yale University’s Budget Lab, a non-partisan policy research center.

That’s the average loss in purchasing power — in 2024 dollars. The burden will range from nearly $2,100 a year for the lowest-income households to more than $10,000 for the highest.

Where will we feel it the most? When we go clothes shopping, for one. In the short run, leather and apparel costs are expected to go up the most, followed by electrical equipment, textiles and mineral products, the lab’s estimates show.

The lab ranked commodities by the biggest estimated increases and included the potential impact on prices both short-term and longer-term, when consumers would presumably start buying alternative products that are cheaper. Longer-term, the average annual cost could drop to $2,700.

Of course, added costs are only part of the economic equation. The president has identified multiple reasons for the new tariffs, including bringing manufacturing investment and jobs back to U.S. shores, which would have a ripple effect on many fronts.

And things are changing quickly, as is evidenced by the president’s recent 90-day pause on some tariffs. Plus, the tariffs are levers in ongoing global trade talks, meaning some nations could come to the table with proposals to lessen their burden.

For now, however, an escalating rift with China — one of the nation’s biggest trading partners — suggests we could be in a protracted trade war.

So what? It’s unclear how long the president’s unprecedented experiment in global trade will last or how it will all play out.

But you don’t want to get caught unprepared, even if an increase in household expenses is temporary. Shoring up your emergency savings, cutting back on non-essential spending, and taking a fresh look at your financial goals can help you weather whatever comes next.

Related Reading

•   Why Do Domestic Prices Rise With Tariffs? (Marginal Revolution)

•   The Economic Effects of President Trump’s Tariffs (Wharton Business School)

•   Making Sense of Recent Market Volatility (SoFi)

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