(MENAFN- News Direct) > President Donald Trump's ever-expanding tariff policy is squeezing importers - who will likely squeeze your wallet in coming months.

On Aug. 1, the administration extended the reach of its 50% tariff on steel and aluminum imports to encompass everyday items containing those metals.

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As CNN reports, that affects 407 categories, from baby strollers to butter knives to deodorants and fire extinguishers. [1]

This new levy is stacked on top of a new 50% tariff on imported copper and copper-derivative products that went into effect Aug. 1.

As of August, the average effective tariff rate stood at 18.6%, the highest since 1933, according to Yale's Budget Lab. The construction, automotive, electronics, food and retail sectors are seeing costs soar.

While many businesses have tried to absorb the costs to stay competitive - and stockpiled imports ahead of tariff deadlines - there's only so much room and time to sacrifice profits.

How and when tariffs will hit your wallet

Automakers, including General Motors, Volkswagen and Stellantis, have each reported more than $1 billion in losses over a three-month period due to tariffs. [2]

Walmart and other major retailers have also warned of price increases if current trends continue.

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Experts say shoppers will notice more gradual price increases in different categories as supply chains catch up with the new levies.

Perishable goods like imported vegetables that can't be stockpiled ahead of tariff deadlines are more vulnerable to immediate price hikes.

Meanwhile, durable goods like clothing, automobiles and appliances may show price hikes later this fall as new shipments subject to tariffs arrive at dealerships and stores.

Overall, the tariffs are expected to cost the average U.S. household an additional $2,400 - impacting things like food, school supplies, clothing and cars - and erode disposable income.

For American families, the ripple effect could complicate monthly budgeting.

Planning ahead for higher prices

The good news is, you can take proactive steps to soften the blow. While tariffs are unlikely to disappear in the short term, being prepared for gradual increases can help you stay financially resilient.

What you can do to weather the tariff storm

Stock up on non-perishable staples (like canned goods, cleaning products and paper supplies) in bulk before further price hikes filter through. You can do this with friends or neighbors to make even larger purchases and get more bang for your buck.

Watch for seasonal sales to stock up on clothing or school items. Compare prices across retailers aggressively, as some may delay price hikes to stay competitive. Get in the habit of checking weekly flyers and coupons.

When it comes to big-ticket items like cars or appliances, timing may be critical . Buying sooner rather than later could help you avoid the full impact of tariffs once inventories of pre-tariff stock run out. On the other hand, if you don't need that new car or appliance right now, delaying big purchases until supply chains adjust could work in your favor.

Seek alternatives , where possible. If certain imported brands become too costly, look for U.S.-made substitutes or generic products that may not be as heavily affected by tariffs.

Finally, budgeting apps and financial tools can also help you track spending categories that are most affected, making it easier to cut back in less essential areas.

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Article sources

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[1]. CNN "Hundreds of items just got a lot more expensive to import into the US because of Trump's tariffs"

[2]. ABC "When could tariff-driven price increases hit shoppers? Experts explain"

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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