Two Unexpected Consequences of Tariffs You Need to Know About

Two Unexpected Consequences of Tariffs You Need to Know About

So everyone’s talking about how tariffs are going to make stuff more expensive, but no one’s mentioning two massive impacts that are going to hit you harder than you think.

First up: Insurance Costs Will Skyrocket.

Here's the deal—insurance companies are basically staffed with math nerds, aka actuaries, who calculate risk. They work out how much you need to pay in premiums so that, in the worst-case scenario, they can cover the cost of accidents, broken windows, or whatever. But guess what happens if the parts for your car or home come from abroad and those parts suddenly cost more due to tariffs?

You guessed it: Your premiums go up. Even if you're not buying a new car, if you're replacing a part, it’s probably coming from overseas. Insurance companies will raise rates to make up for that extra cost, and that means you’re paying more for car insurance every month—whether you drive or not.

Next: Even “American-Made” Stuff Is Gonna Get More Expensive.

Let’s say you want to buy Florida oranges—grown right here in the U.S. Great! But guess what’s not American-made? The hose used to water the oranges, the truck that delivers them, the fluorescent lights at the grocery store, or even the netting that holds the oranges in the bag. Every little piece of the supply chain adds costs, and those costs are going up.

So, if you think you can just buy American to save, think again. Tariffs are making everything more expensive, and it’s going to hurt the people who can least afford it. If you think it’s only the stuff that’s imported that’s getting pricier, you’re in for a rude awakening.