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Tariff Panic: 3 Common Tariff-Related Fears and What You Can Do About Them
Americans are growing increasingly concerned about the effects tariffs will have on their finances. According to the BMO Real Financial Progress Index, 67% of Americans were concerned about tariffs in April, up from 59% in March.
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Those fears cut across gender and generational divides as well. Sixty-four percent of men and 71% of women are concerned about tariffs; and 66% of Gen Z, 66% of millennials, 68% of Gen X and 69% of boomers and older Americans are concerned.
'Consumers have told us in this survey that higher tariffs and rising tariff uncertainty are rattling their confidence in their finances, the cost of living and the prospect of even higher inflation ahead,' Scott Anderson, chief U.S. economist at BMO, stated in a news release.
Here's a closer look at Americans' tariff-related fears and how they can address them.
Many Americans — and particularly younger Americans — are feeling less confident about their financial situation due to tariff uncertainty. More than half of Americans (59%) said they are more concerned about their overall financial situations, up 14 points over March. Gen Z and millennial respondents' concerns about their financial situations increased by 17 points over the previous month, the BMO survey found.
'As tariff tensions rise, many Americans are feeling the pressure in their wallets,' Pratik Patel, head of U.S. wealth planning for BMO U.S. Wealth Management, told GOBankingRates. 'This is especially true for younger Americans, who often have less financial cushion and are more vulnerable to income disruptions.'
There are steps Americans of all ages can take to feel more financially secure, despite whatever tariffs may be in effect.
'First, reinforcing the basics is key,' Patel said. 'Build or replenish an emergency fund, revisit household budgets and pay down high-interest debt to help build a buffer against rising costs. These foundational moves not only improve financial resilience but also restore a sense of control.'
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Many Americans also fear that they will struggle to cope with the possibility of even higher living costs and a more inflationary environment than we have now. Three-quarters of Americans (75%) reported an increase in worry over the cost of living, a 12-point increase over March. These fears may not be unwarranted — but there are ways to prepare.
'Consumers should prepare for the ripple effects of inflation,' Patel said. 'Tariffs tend to lead to higher prices on imported goods, which can impact everything from groceries to electronics. Adjusting spending habits — such as prioritizing needs over wants or switching to more affordable alternatives — can help manage these shifts.'
Investors should also take preemptive action, Patel said.
'For investors, this may be a good time to review portfolios and consider inflation-protected assets or sectors that tend to perform well in volatile environments,' he explained.
Staying informed and working with experts is also very important.
'Financial advisors and planners can offer tailored strategies, and keeping an eye on policy developments can help consumers and business owners anticipate changes and adapt early,' Patel said. 'For younger Americans, automating savings, investing in skills and using budgeting tools can go a long way in building long-term financial confidence.'
Overall, Americans should not let their tariff fears get the best of them.
'With the right strategies and support,' Patel said, 'Americans can navigate tariff-related challenges and maintain confidence in their financial future.'
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This article originally appeared on Tariff Panic: 3 Common Tariff-Related Fears and What You Can Do About Them
