By Timothy Kelheart With today’s political economic climate of tariffs being levied on one nation after another and retaliatory tariffs being implemented as a result, the world is heading towards some difficult times. But what will this mean to us the everyday person of the U.S.? Will we have to p...

By Timothy Kelheart

With today’s political economic climate of tariffs being levied on one nation after another and retaliatory tariffs being implemented as a result, the world is heading towards some difficult times. But what will this mean to us the everyday person of the U.S.? Will we have to pay drastically higher prices for the goods and services we use and need each day? The answer as surprising as it is, is no.

The world will not catch aflame and there will be not be more people starving in the streets because of these tariffs and claimed “trade war.” The price of some commonly used goods might increase slightly if these additional costs caused by these tariffs are not absorbed by the manufacture or reseller who then will displace these additional costs on the consumer and end user. At this point, this is where it becomes interesting. When the price of goods increase consumers will begin to consider whether to buy the good at the new higher price, a substitute good that is cheaper than the new higher price, or the consumer will not purchase the good at all.

The increase in price of imported steel and aluminum will mainly effect its producers and manufactures that import these products into the U.S. Aluminum and steel are used in a magnitude of products that are consumed and used within the United States, but can you the consumer really get ahead of the rise in prices for these goods? The answer is, it depends. It depends if you want something that is made out of these goods prior to the price increase. Not many people are going to stockpile aluminum cans with their favorite beverage in it as it will be shortsighted and not save your wallet from the price increase in the future. But if you were going to be buying tools or car accessories that are mainly made of steel and aluminum you should consider buying them now before the tariffs are felt across the board.

All in all there is no reason to fear that these tariffs will start a “trade war” and you should go about your business as usual. Remember to always stay informed, look ahead for future trends, and stay out of the red.