I don’t know about you, but last week has been an emotional rollercoaster for me. From tariffs are coming into effect and to “nope, nope – they have been postponed a month!” -my nervous system is shot!
I have been having many conversations with clients about how best to prepare their personal finances for possible tariffs and wanted to extend these tips to you.
Yes, proposed tariffs might mean some things are going to get a bit pricier and it is important we can take control of our finances with a calm, positive approach.
What’s is a Tariff?
Simply put, a tariff is a tax imposed by one country on goods imported from another. The goal is often to protect domestic industries, but it can also make imported goods more expensive for consumers.
The U.S. has announced a proposed 25% tariff on Canadian imports, including a 10% tariff on energy products. In response, Canada has proposed a 25% tariff on $30 billion worth of U.S. goods, with plans to extend to another $125 billion in the coming weeks. For now this has all been put on hold for a month.
Items like orange juice, peanut butter, wine, coffee, clothing, and even some appliances might get pricier. And let’s not forget energy prices, which could also climb. But don’t worry—there’s plenty we can do to stay ahead of the game should these tariffs come into effect.
Let’s Focus on What We Can Control:
The secret to thriving in this moment? Control your spending habits, not your joy. Here’s the game plan:
1. Stick to Your Spending Plan:
If you don’t have a spending plan, now’s the time to create one. Already have one? Great! Stick to it like glue. Your plan is your anchor to prevent emotional spending (you know, like that extra tub of pricey ice cream during a “just in case” moment).
2. Adjust, Don’t Overspend:
If orange juice is climbing in price, skip it and switch to apple juice, tea, or even good ol’ tap water. The goal isn’t to spend more—it’s to substitute smartly. Think of it as a treasure hunt for new favourites!
For items that might be affected by tariffs, such as home appliances, it could be a good idea to buy them sooner rather than later if you are in the market. This way, you can avoid potential price hikes down the road.
4. Support Local & Canadian-Made Products:
Many of the tariff-affected goods are imports. This is a golden opportunity to explore local alternatives. Not only might you save money, but you’ll be supporting Canadian businesses too. Win-win!
5. Be Energy-Savvy:
Turn Challenge Into Opportunity:
Think of this as a chance to get creative and resourceful. Can’t find affordable coffee? Experiment with tea blends. Pricey peanut butter? Maybe it’s time to try almond butter or jam. These shifts can lead to surprising discoveries and even new traditions!
We’re All in This Together:
Remember, you’re not alone. We’re a community of resilient and savvy spenders. Reach out if you’re feeling stuck or need a little encouragement. We’ve got your back.
Stay Positive, Stay Focused:
At the end of the day, it’s about keeping your financial peace of mind intact. This is a bump in the road, not a brick wall. With a little planning, a positive outlook, and a commitment to what you can control, you’ll navigate these changes like the pro you are.
You’ve Got This!
Take a deep breath, sip that tea (or substitute beverage), and let’s make smart, happy choices together. We’re cheering you on every step of the way!
P.S. Would you rather watch this post? Check it out here!
