NerdWallet's Smart Money Podcast
Tariff Talk: What Trade Policies Could Mean for Your Budget
04 Dec 2024
Learn how tariffs affect prices, inflation, and manufacturing, plus tips to prepare for potential new economic changes. What are tariffs, and how do they affect your wallet? What would President-elect Donald Trump’s proposed tariffs mean for consumers, the economy, and inflation? Hosts Sean Pyles and Anna Helhoski dive into the complexities of tariffs, unpacking their potential impact on prices, supply chains, and domestic manufacturing. They begin with a breakdown of what tariffs are, why they exist, and how they’ve historically influenced U.S. trade policy. Along the way, they share insights on navigating rising costs, understanding the global supply chain, and the inflationary effects of tariffs. In the second half of the episode, Sean and Anna cover the latest money headlines, including trends from Black Friday and Cyber Monday spending, predictions for a potential “Santa Claus rally” in the stock market, and a new survey revealing Americans’ views on financial success. 8 Last-Minute Christmas Vacations to Book in the U.S. https://www.nerdwallet.com/article/travel/christmas-travel-destinations In their conversation, the Nerds discuss: what are tariffs, how tariffs work, tariffs and inflation, Trump tariff plans, supply chain tariffs, inflation and tariffs, trade policy impact, tariffs on imported goods, global supply chain issues, consumer price increases, manufacturing tariffs, economic impact of tariffs, U.S. trade policy, Black Friday spending trends, Santa Claus rally stock market, tariffs on Canada Mexico China, global trade tariffs, tariffs and manufacturing, economic inflation causes, tariff history in the U.S., import taxes, Trump trade policies, price increases on goods, supply chain disruptions, manufacturing challenges, economic recession fears, holiday spending trends, U.S. exports, and international trade. To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email [email protected]. Like what you hear? Please leave us a review and tell a friend. Learn more about your ad choices. Visit megaphone.fm/adchoices
Full Episode
Welcome to NerdWallet's Smart Money Podcast. I'm Sean Piles.
And I'm Anna Helhosky.
And this is our weekly money news roundup, where we break down the latest in the world of finance to help you be smarter with your money. We'll go deep into a single topic, then leave you with the latest money headlines. Today, we're taking a closer look at tariffs, what they are and how they ultimately affect you.
That's right. And we'll explain President-elect Donald Trump's big plans for enacting new tariffs once he steps back in the Oval Office in January. We touched on Trump's tariff plans during our election series in October and in our post-election episode on November 13th. So feel free to check those out. Sean, why don't you kick us off with an explanation of what tariffs are?
A tariff is, essentially, a tax on imported goods when they enter the country. It's usually a fixed amount or a percentage of the price of the import. Tariffs are used for a few different reasons. To raise revenue, to protect domestic interest from foreign competition, or as a foreign policy tool.
So here's why tariffs are in the discourse right now. Trump has promised to levy all kinds of new tariffs when he's president again, including 10% to 20% across the board tariffs on all imported goods, up to 60% tariffs on goods imported from China, and 100% to 200% tariffs on automobiles produced in Mexico.
Then last week, Trump also said he would levy a 25% tariff on all imports from Canada and Mexico. Those are the top two exporters of goods to the United States. He also promised to levy a 10% tariff above any additional tariffs on China. They're the third biggest exporter of goods to the United States.
He said on Truth Social that the reason for those threats are due to the rise in fentanyl smuggling.
Presidents have levied all kinds of tariffs over the years, either on a country or for a particular good. So it's not a new thing. But throughout the campaign, economists expressed concerns about the extent of Trump's tariff plans and the potential impact on the economy. Now, not all campaign promises bear fruit.
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