Grocery Bills
Grocery shopping has become painful for many Americans. Food prices increased by 9.9% in 2022 and 5.8% in 2023, according to the U.S. Department of Agriculture. Potential tariffs — particularly the 25% tariff on imports from Mexico that Trump has discussed — could cause prices to skyrocket more.Related video: Trump’s Tariffs Explained: Will They Lead to Higher Prices? (WUSA-TV Washington, D.C.)
“Many fresh fruits, vegetables and meats, such as avocados, tomatoes and beef, are sourced from Mexico, meaning food costs could rise,” said Simeon Wallis, CFA, chief investment officer at Aprio, LLP.
Unfortunately, pricing impacts could be immediate.
“Essential goods like food and gas may experience immediate price hikes as supply chains adjust,” Wallis added.
Read Next: 4 Ways Trump’s Win Could Affect the Housing Market in 2025
Car Payments
Financing a car could soon be more expensive, also thanks to tariffs. If the 25% tariffs on Canada and Mexico take effect, a $25,000 car could add up to an extra $6,250 to the price of the automobile, according to S&P Global Mobility.
Healthcare
Healthcare isn’t typically cheap. Changes to the premium tax credit reduced pricing for Americans in the Affordable Care Act (ACA) marketplace. However, the enhancements are set to terminate at the end of 2025.
This could increase costs for most by up to $1,860 annually, according to the Center on Budget and Policy Priorities.
Unfortunately, Wallis added, there could be additional increases. “Healthcare costs could rise as medical device and pharmaceutical prices increase, largely due to higher import costs, particularly from Canada, and higher manufacturing costs for these products.”
Gas
Filling up your car at the gas pump could also become more burdensome. Trump ordered 10% tariffs on natural oil and gas from Canada and Mexico to begin in March.
Home and Auto Insurance Premiums
Home and auto insurance premiums are a necessary expense for Americans. Sadly, those costs could also soar under Trump, again sparked by tariffs.
“Home and auto insurance premiums could likely rise as the costs of building materials and other components increase, which raises the cost of replacing these items,” said Wallis.
Utility Bills
Trump announced a targeted tariff to add a 25% duty on aluminum and steel imports, including from Canada and Mexico. During his previous term, he acted similarly, with a 10% tariff on aluminum and 25% on steel. This could directly impact monthly utility bills.
Increases to the cost of these materials could “impact infrastructure and construction projects, driving up utility rates,” said Wallis.
How To Prepare
Preparation is key to mitigating the impact on your budget.
“Americans should consider buying non-perishable essentials and durable items, such as home improvement supplies and vehicles, before prices rise,” said Wallis.
Opting for domestic products, when available, can be another good way to reduce budgetary stress. While you can’t control tariffs, you can plan ahead for the financial effects of proposed changes.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. For more coverage on this topic, please check out 3 Bills You Might Not Have To Pay With Trump as President.
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This article originally appeared on GOBankingRates.com: 6 Bills That Could Skyrocket With Trump as President
