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Within the Money Slack workspace, which has been active since 2019, the term “tariff” has been mentioned a staggering 557 times. Remarkably, nearly all of these discussions occurred within the last six months. (Yes, I took the time to count.)
Tariffs have not only sparked discussions in economic circles but have also made their way into popular culture, featuring in a Saturday Night Live cold open and trending on Chinese TikTok. Car dealerships are even hosting sales specifically themed around tariffs. Recently, the phrase “girl, the tariffs” has permeated our everyday conversations, making its mark in our lexicon much like “stimmy,” and is now being used to express reactions to various topics ranging from the Cowboy Carter tour to errors at cafe checkouts.
Despite the often negative discourse surrounding tariffs, which suggests that the overall price increases from the anticipated 2025 tariffs could cost the average household approximately $4,700 annually, I find myself pondering the unusual nature of this situation. Tariffs are a topic I was introduced to during my eighth-grade U.S. history class, and I genuinely thought I would never encounter them again. Fast forward to now, at 33 years old, and I’m overhearing discussions about tariffs in bars.
Amidst all the pessimistic forecasts and doomsday interviews, surely there must be some silver lining in this situation, right?
Identifying the Potential Benefits of Current Tariff Discussions
Emily Barbe, a certified financial planner affiliated with Domain Money, emphasizes that pinpointing a positive aspect of economic policy can be quite challenging, especially since such policies often feel abstract until they suddenly become very real and impactful.
While I certainly don’t intend to downplay any adverse effects — indeed, layoffs and a potential recession are looming threats, as many experts have cautioned — there may be some positive outcomes worth considering.
Former President Donald Trump has suggested that these expanded tariffs, which act as taxes on imported goods, are intended to motivate manufacturing companies to bring jobs back to the U.S. Although the outcomes of this proposal remain uncertain, there are various advantages to consider, according to Patti Brennan, the president and CEO of Key Financial Inc. She points out that companies relocating production to the U.S. due to tariff incentives could enhance national security, promote career opportunities in the trades, and bolster U.S. supply chains.
Moreover, as corporations strive to mitigate their increased costs, they may need to adopt more innovative approaches, which “could spark breakthroughs in automation, innovation, and sustainability,” asserts Brennan. This notion aligns with the idea that necessity often drives innovation.
“Yes, the situation is chaotic and quite daunting. However, if we can pause for a moment and take a deep breath, we should consider what positive developments might arise from all this,” she adds thoughtfully.
On a broader scale, the heightened awareness surrounding tariffs itself serves as a silver lining, according to Mary Clements Evans, a CFP and author of Emotionally Invested.
“As human beings, we often don’t pay close attention to issues until they start to impact us personally,” she explains. “Now, everyone is beginning to realize that politics matter, trade policy has real consequences, and these issues affect all of us.”
When expenses rise, individuals tend to become more vigilant about their spending habits. For many, tariffs might necessitate cutting back on non-essential purchases while simultaneously increasing their savings.
This shift is already underway: a recent survey by Redfin revealed that 24% of consumers reported canceling plans for significant purchases due to tariffs, while an additional 32% indicated that they were postponing these plans.
For others, the tariffs may prompt a closer examination of their purchasing decisions.
Brennan suggests we could witness a trend where consumers move away from cheap, disposable products that offer short-term convenience and instead gravitate towards durable, high-quality items that provide long-lasting value.
I might start to investigate the origins of the items I purchase and become more selective about the brands I support. (As a reference, it’s noteworthy that 60% of Walmart’s imports come from China, while 25% of Nike shoes are sourced from Vietnam.)
“There will be a shift towards more conscious consumption,” Brennan states. “Instead of passively allowing your money to dictate your purchases, take charge and direct your spending where it aligns with your values.”
This behavioral change is likely to continue even in the absence of a recession — which, by the way, we are not currently experiencing. It resembles the phenomenon where, upon actively tracking my candy intake, I naturally begin to consume less of it.
Indeed, while this shift may be uncomfortable in the short term, it is likely to yield long-term benefits. In fact, the price increases stemming from these tariffs might serve as the impetus I need to get my financial affairs in order by enhancing my emergency fund, reassessing my budget, investing in stocks (which are somewhat undervalued right now), and engaging in other financially prudent actions.
“During prosperous times, it’s easy to tune out personal finance matters. It’s all too simple to operate on autopilot, swipe the credit card, and buy whatever you desire,” Barbe notes. “However, when significant changes occur, accompanied by a sense of doom and gloom, whether justified or not, it compels people to pay closer attention to their financial situations.”
Understanding the Broader Implications of Tariffs on Consumer Behavior
As people increasingly focus on trade policy like never before, it’s essential to recognize that if the tariffs prompt me to be more mindful of my spending habits, that’s a positive development — it can help me save money and ensure that I am allocating my resources effectively to achieve my personal financial goals.
“Gaining a comprehensive understanding of how the economy functions is incredibly valuable for everyone, as we are all consumers,” Clements Evans emphasizes.
Explore More Insights from Money:
Discover How Should I Prepare for a Recession?
Learn What Trump’s New Tariff Announcements Could Mean for Your Wallet
Understand Why Can’t the Government Just Print More Money?
