President Donald Trump’s recent move to introduce a new tariff system is stirring up quite a bit of buzz, and some states are more likely to feel the heat than others. So, what’s going on, and why does it matter?
What’s the Deal with the Tariffs?
Trump signed a memorandum promising to implement tariffs on countries that charge the U.S. tariffs—simple enough, right? The idea is to make trade more “fair” by matching what other countries charge the U.S. He’s been talking about this since his campaign, and now he’s following through. As part of this, tariffs on goods from Canada, Mexico, and China are in the works, including up to 25% on imports from Mexico and Canada and 10% on Chinese imports.
What Does This Mean for You?
According to a new report from LendingTree, not all states are in the same boat when it comes to these tariffs. Some states will be hit harder than others because they import a lot of goods from Canada, Mexico, and China.
The report found that 10 states are particularly vulnerable to these tariffs: Montana, New Mexico, Vermont, Michigan, Maine, North Dakota, Oklahoma, Wyoming, Iowa, and South Dakota. These states have a higher percentage of imports from those countries, meaning they’ll feel the effects more than others.
Why Does This Matter?
If you live in one of these states, you might start noticing higher prices for everyday items. In fact, 74% of Americans believe tariffs will cause prices to rise. This could also affect the economy overall, with many expecting job losses and financial strain. According to the report, 44% of Americans think tariffs will negatively impact their personal finances.
What Do the Experts Say?
Here’s what a few financial experts are saying about the situation:
- President Trump: He argues that this tariff system will bring fairness back to the trade game, saying that it’s about time countries treat the U.S. fairly.
- Alex Beene, Financial Literacy Instructor: Beene points out that many of the states most affected are those that voted for Trump in the 2024 election. Even with the risk of rising prices, many of these voters still support the tariffs because they believe it will pay off in the long run.
- Kevin Thompson, Finance Expert: Thompson highlights how much the U.S. relies on imports from China. He notes that some states import more from China than from their neighboring countries, Mexico and Canada.
- Bryan Driscoll, HR Consultant: Driscoll warns that these tariffs could hit businesses hard, leading to job losses and higher prices for consumers. Unfortunately, it’s the states that need help the most that will feel this the most.
What Should You Do Next?
As the new tariff rates are still being figured out, one thing is clear: people might see higher prices in the near future. To prepare for this, experts like Kevin Thompson suggest building a stronger financial cushion. If you haven’t already, now might be the time to save up for 12 months of expenses (up from the typical 6-9 months emergency fund). It’s also a good idea to adjust your spending habits—think carefully about your purchases, and maybe cut back where you can.
Bottom Line
While the exact impact of these tariffs is still unfolding, it’s clear that some states are in for a bumpy ride. By planning ahead and being mindful of your finances, you can better navigate the economic changes that are coming your way.
