April 11th 2025.
As President Donald Trump imposed heavy tariffs on countries such as China and US allies, the resulting increase in prices has left consumers with a tough decision to make. According to Fortune, many are struggling to choose between sticking to the bare necessities or indulging in luxury items.
While some are trying to save every penny, others are eagerly splurging on the latest tech gadgets, like smartphones. However, with Trump announcing a 90-day "pause" on tariffs, some shoppers are approaching their purchases with extra caution. One retired woman shared that she has cut back on her spending as a precautionary measure, stating, "Things are going to keep going up, and we need the money to buy more food next week or the week after."
For some, the main concern is not groceries, but rather getting their hands on the newest gadgets and trends before the prices skyrocket. The new tariffs will heavily impact electronics made in China, with a 104% tax, as well as clothing made in Vietnam, which will see a 46% price increase. Charles from Virginia expressed his dislike for tariffs but plans to buy a new Apple iPhone just in case prices do rise.
Keith Taylor, a 62-year-old who recently purchased a new iPhone, shared that it will likely be his last purchase for a while. "That'll be the last thing I purchase until all this gets settled out," he said.
With the post-Covid inflation and now the added tariffs, households are feeling the squeeze. Anastasia Nevin, a mother of two from New York, admitted that she is in "survival mode." "I have two kids, so I'm just trying to get by. It's tough," she said.
Matt Schulz, the chief consumer financial analyst at LendingTree, advises consumers to stick to their financial plan instead of panicking. "Regardless of whether tariffs are implemented, your goals are still your goals," he said, as reported by the Sacramento Bee. "You still need to invest in your retirement. You still may need to save money to buy a home, pay for your kid's college education, or pay for a wedding."
Despite US Department of Agriculture Secretary Brooke Rollins' reassurance that this will only be a temporary period of uncertainty, economist Clement Bohr from UCLA Anderson Forecast believes that these tariffs should not be taken lightly. "It could be devastating to the economy," Bohr stated.
In these uncertain times, Schulz advises consumers to plan accordingly instead of panicking. "Panic leads to bad choices in all aspects of life, and money is definitely no exception," he said. He also suggests seeking help and setting up an emergency fund, and if there are any major purchases needed, such as a car, it would be best to make them sooner rather than later.
On a related note, here are some iPhone apps that can help save money.
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