Increasing Tariffs and Steps Consumers Can Take to Protect Themselves

1. What is a Tariff?

2. Impacted countries and products

3. What Consumers Can Do

4. Community Resources

5. Scams Targeting Tariff-Conscious Consumers

6. Using Manually Vetted Shopping Platforms

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1. What is a Tariff?

A tariff is a tax or duty imposed by a government on imported goods. It is typically used as a policy tool to regulate trade by either protecting domestic industries from foreign competition or as a response to economic disputes between nations. Tariffs can be levied on a percentage basis (ad valorem tariffs) or as a fixed amount per unit (specific tariffs).

Who Pays the Tariff?

A common misconception is that foreign producers or governments pay tariffs. In reality, importers – typically U.S. businesses – are responsible for paying the tariff when they bring goods into the country. These importers then decide how to handle the added cost:

1. Absorbing the cost – Businesses might accept lower profit margins to keep consumer prices stable.
2. Passing it to consumers – Higher import costs often translate into higher retail prices for consumers.
3. Switching suppliers – Companies may seek alternative sources in countries not affected by tariffs, but this can take time and may still result in price increases.

How Tariffs Impact Consumer Prices

The imposition of tariffs leads to several ripple effects in the economy, particularly for consumers:

• Higher Retail Prices: Since many consumer goods—such as electronics, clothing, furniture, and automobiles—are imported, businesses typically pass on some or all of the added tariff costs to consumers, making everyday items more expensive.

• Inflationary Pressure: When multiple industries face tariffs, the cumulative effect can lead to overall inflation, reducing consumer purchasing power.

• Changes in Supply Chains: Companies may seek new suppliers from non-tariffed countries, but this can take time and may still lead to higher costs due to logistical or quality control issues.

• Job and Wage Impacts: Domestic industries benefiting from tariffs may experience temporary growth, but industries relying on imported goods (e.g., retailers and manufacturers using foreign components) may cut jobs or delay wage increases due to higher costs.

• Uncertainty in Markets: Trade disputes can create economic uncertainty, causing fluctuations in stock markets and affecting consumer confidence.

 

2. Impacted countries and products (as or Feb 2025)

The recent imposition of tariffs by the U.S. government on imports from Canada, Mexico, and China is expected to lead to higher prices for various consumer goods. To mitigate the impact of these price increases, consumers can consider the following strategies:

Electronics:

• China: A significant portion of U.S. electronics imports come from China, including smartphones, computers, and televisions. Major brands such as Apple, Samsung, and LG source components or assemble products in China. 

• Mexico: Mexico is a major producer of electronics, including audio and video equipment, telecommunications devices, and computer equipment. Brands like Sony, LG, and Samsung have manufacturing facilities in Mexico. 

• Canada: While Canada exports some electronics, its share in the U.S. market is smaller compared to China and Mexico.

Automotive Parts and Vehicles:

• Mexico: Mexico is the largest exporter of vehicles, vehicle parts, and accessories to the U.S., making up 27% of all imports from Mexico. Major automakers like General Motors, Ford, and Fiat Chrysler have manufacturing plants in Mexico.

• Canada: Canada exports a significant amount of automotive parts and vehicles to the U.S., including products from brands like Ford and General Motors.

• China: China exports automotive parts and accessories to the U.S., though its share is smaller compared to Mexico and Canada.

Furniture:

• China: China is a major supplier of furniture to the U.S., including items like sofas, chairs, and tables. Brands such as IKEA source a significant portion of their products from China. 

• Mexico: Mexico exports furniture to the U.S., including wooden furniture and upholstered items.

• Canada: Canada exports some furniture to the U.S., including wooden furniture and mattresses.

Clothing and Textiles:

• China: China is a leading exporter of clothing and textiles to the U.S., including garments, fabrics, and accessories. Brands like Nike, Adidas, and Gap source a significant portion of their products from China. 

• Mexico: Mexico exports clothing and textiles to the U.S., including garments and fabrics.

• Canada: Canada exports some clothing and textiles to the U.S., including garments and fabrics.

Toys and Sporting Goods:

• China: China is a major supplier of toys and sporting goods to the U.S., including items like action figures, dolls, and sports equipment. Brands such as Mattel and Hasbro source a significant portion of their products from China. 

• Mexico: Mexico exports toys and sporting goods to the U.S., including items like dolls and sports equipment.

• Canada: Canada exports some toys and sporting goods to the U.S., including items like dolls and sports equipment.

Household Appliances:

• China: China is a major supplier of household appliances to the U.S., including refrigerators, washing machines, and microwaves. Brands like Whirlpool and GE source components or assemble products in China. 

• Mexico: Mexico exports household appliances to the U.S., including items like refrigerators and washing machines.

• Canada: Canada exports some household appliances to the U.S., including items like refrigerators and washing machines.

Food Products:

• Avocados and Cherry Tomatoes: Tariffs on Mexican imports may cause prices to rise. Opting for domestically sourced produce can help avoid these increases.

• Maple Syrup: Canadian imports are subject to tariffs, potentially raising prices. Purchasing local or alternative syrups can be a cost-effective choice.

Beverages:

• Beer: Mexican beers, such as Modelo, may become more expensive due to tariffs. Exploring domestic beer options could offer savings.

Energy:

• Gasoline: A 10% tariff on Canadian crude oil imports may lead to higher gas prices. Conserving fuel and considering alternative transportation methods can help reduce expenses.

Construction Materials:

• Steel and Lumber: Tariffs on Canadian and Mexican imports may increase prices for construction materials. Consumers planning home improvement projects might consider purchasing materials in advance or seeking alternative sources.

 

3. What Consumers Can Do

Finding local products can help consumers avoid the impact of tariffs while supporting domestic businesses. Here are some effective ways to locate and purchase locally made goods:

1. Check Labels and Packaging

• Look for “Made in the USA” or other country-of-origin labels on products.
• Some brands highlight “locally sourced” or “handcrafted” products.

2. Shop at Farmers’ Markets & Local Stores

• Visit farmers' markets, artisan fairs, and craft markets, which often feature locally produced items like furniture, textiles, and household goods.
• Support independent retailers and small businesses in your area.

3. Use Online Marketplaces for Local Goods

• Platforms like Etsy and Shopify allow you to filter by location to find products made by small businesses in your country or region.
• Websites such as The American List (by A Continuous Lean) curate brands that manufacture in the U.S.

4. Search for Local Brands

• Many local brands have websites showcasing their products. Search online using terms like:
  • “Made in [your country] [product name]”
  • “Local brands for [product]”
  • “USA-made electronics/clothing/furniture”
• Visit company websites to verify their manufacturing location.

5. Visit Specialty Retailers

• Some big-box retailers have dedicated sections for locally made or regionally sourced products.
• Specialty stores often focus on selling goods from small and independent producers.

6. Follow Social Media & Local Business Groups

• Platforms like Instagram, Facebook Marketplace, and LinkedIn are great for discovering and supporting local brands.
• Join local Facebook groups or community pages where people share recommendations for locally made goods.

7. Use “Made in USA” or Local Product Directories

• Websites like MadeinAmerica.com, Made in USA Forever, or Small Business Directories list brands that manufacture locally.
• Some states have their own registries of local manufacturers.

8. Ask Retailers Directly

• Inquire with store representatives about locally sourced options.
• Many businesses prioritize sourcing from domestic suppliers and may have recommendations.

By making an effort to buy local, consumers can reduce reliance on imports, support local economies, and potentially avoid tariff-related price increases.

 

4. Community Resources

There are several local and community-based resources that help consumers find locally made products, ensuring they can support domestic businesses while avoiding tariff-related price hikes. Here’s a breakdown of some of the best options:

1. Local Business Directories & Websites

• Made in America Directory: Lists U.S. manufacturers and locally made products.
• Made in USA Forever: Specializes in American-made clothing, home goods, and tools.
• Local First Networks: Many cities have organizations promoting local businesses, such as Local First Arizonaor Local First Chicago.
• State-Specific Directories: Some states maintain their own lists of locally made products (e.g., "Buy California" or "Texas Made Products").

2. Farmers’ Markets & Artisan Markets

• Local Farmers’ Markets: Often include not just food but also handmade furniture, textiles, and crafts.
• Craft and Maker Fairs: Look for events such as Etsy Local Markets or Renegade Craft Fair.
• State Fairs & Expos: These events often feature local brands and independent businesses.

3. Small Business & Retailer Associations

• Chambers of Commerce: Many local chambers have directories of small businesses and locally made products.
• National Association of Manufacturers (NAM): While more business-focused, NAM supports U.S.-based manufacturers.
• Independent Retailer Associations: Groups like American Independent Business Alliance (AMIBA) promote local shopping initiatives.

4. Online & Social Media Platforms

• Etsy Local (etsy.com/local): Lets you browse for handmade and small-batch goods made by local artisans.
• Facebook Marketplace & Buy/Sell Groups: Many community-based groups feature locally made or secondhand goods.
• Instagram Hashtags: Try searching #MadeinUSA, #ShopLocal, or #[YourCity]Makers to find brands near you.

5. Local Shopping Apps & Marketplaces

• Visional’s shopping assistants can find real-time inventory, live shopping experiences to help consumers navigate a changing retail landscape with confidence—finding what they need locally, efficiently, at the best price possible and the highest scam protection measure available.
• Neighborhood Apps: Apps like Nextdoor and Craigslist often list locally made products.
• Local Retailer Platforms: Some cities have their own shop local apps to connect consumers with nearby businesses.

6. Co-ops & Community-Supported Initiatives

• Co-op Markets: Some community-based cooperative markets sell local home goods, clothing, and crafts in addition to food.
• Community Trade Associations: Groups like Buy Local initiatives in various cities help highlight local goods.

7. Ask Retailers & Stores Directly

• Many large retailers have “Made in USA” sections or partner with local producers.
• Ask store managers or customer service reps if they carry locally made versions of products you need.

 

5. Scams Targeting Tariff-Conscious Consumers

As tariffs increase, consumers seeking cost-effective alternatives may become targets for various scams. Being aware of these fraudulent schemes and knowing how to protect yourself is crucial.

Common Scams:

1. Fake Discount Offers:

   • Description: Scammers advertise counterfeit or non-existent products at significantly reduced prices, claiming to help consumers avoid tariff-induced price hikes.
   • Example: An online store offers popular electronics at prices much lower than market value, but after payment, the products are never delivered.

2. Phishing Emails and Texts:

   • Description: Fraudsters send messages impersonating reputable retailers or government agencies, offering deals or assistance related to tariffs.
   • Example: A consumer receives an email claiming to be from a well-known retailer, offering exclusive deals to circumvent tariff costs, prompting them to click on malicious links.

3. Tariff Rebate Scams:

   • Description: Scammers pose as government officials or agencies, claiming consumers are eligible for tariff rebates or refunds, and request personal information or fees to process the claim.
   • Example: A phone call informs a consumer that they can receive a rebate for tariff-related expenses if they provide their Social Security number and pay a processing fee.

4. Counterfeit Goods:

   • Description: To attract consumers looking to save money, scammers offer counterfeit products at lower prices, compromising quality and safety.
   • Example: A website sells branded clothing at a fraction of the cost, but the items received are fake and of poor quality.

Protective Measures:

• Verify Seller Legitimacy: Before making a purchase, research the seller thoroughly. Look for reviews, check for a physical address and contact information, and verify their reputation through trusted platforms.

• Be Cautious with Personal Information: Legitimate organizations will not request sensitive information through unsecured channels. Avoid sharing personal or financial details via email or phone unless you have confirmed the recipient's identity.

• Scrutinize Offers That Seem Too Good to Be True: Unusually low prices or promises to circumvent tariffs are red flags. If an offer seems unrealistic, it's best to avoid it.

• Use Secure Payment Methods: Opt for credit cards or reputable payment services that offer fraud protection. Avoid wire transfers or prepaid debit cards, as they are harder to trace and recover.

• Stay Informed: Keep up-to-date with official communications from government agencies regarding tariffs and related policies. This knowledge can help you identify fraudulent claims.

• Report Suspicious Activities: If you encounter a potential scam, report it to the Federal Trade Commission (FTC) or your local consumer protection agency. Prompt reporting can help prevent others from falling victim.

By remaining vigilant and following these protective measures, consumers can safeguard themselves against scams exploiting tariff concerns.

 

6. Using Manually Vetted Shopping Platforms

Using social and shopping apps that manually vet sellers can be an effective way to protect consumers from scams, especially in a market where tariffs may push people to look for alternative or cheaper sources. Here’s how these platforms can help and what consumers should look for:

Advantages of Using Manually Vetted Shopping Platforms

1. Fraud Prevention & Trustworthiness

   • Apps that manually vet sellers verify business legitimacy before allowing them to list products, reducing the risk of fraudulent activity.
   • This ensures that only genuine, high-quality products from trusted sources are available.

2. Higher Quality Assurance

   • Many scam sellers offer counterfeit or substandard goods at lower prices to attract tariff-conscious buyers.
   • Vetted platforms conduct background checks on sellers, ensuring that all products meet certain standards.

3. Protection Against Fake Discounts

   • Many scammers exploit tariffs by advertising fake discounts or "tariff-free" deals.
   • Verified shopping apps review product pricing and business history to prevent deceptive pricing practices.

4. Secure Transactions

   • Many vetted platforms use escrow services or protected payment gateways, ensuring that buyers receive their product before money is fully released.
   • Chargebacks and refunds are easier to process if a product is not as described.

5. Verified Customer Reviews

   • Fake shopping sites often manipulate or generate fake reviews to appear trustworthy.
   • Manually vetted platforms use verified purchase reviews, where only customers who have bought the product can leave feedback.

6. Responsive Customer Support

   • Manually verified marketplaces typically offer human customer support that can step in if there's an issue with an order.
   • This is crucial when tariffs disrupt supply chains, as delays or substitutions can happen.

Examples of Secure Shopping Apps That Vet Sellers

• Visional: Ensures only verified retailers and local stores are listed, reducing the risk of scams.
• Etsy (Handmade & Small Businesses): Has a rigorous verification process for independent sellers.
• Goat & StockX (Sneakers & Apparel): Authenticate every product before it's shipped to the buyer.
• Farfetch (Luxury Fashion): Works only with vetted boutiques and brands.
• Reverb (Musical Instruments & Gear): Manually reviews sellers to ensure authenticity.

What Consumers Should Look for in a Vetted Shopping Platform

• Seller Verification Process: Ensure the platform has a manual review process for new sellers rather than just automated listings.
• Secure Payment Processing: Look for platforms that hold funds in escrow or provide buyer protection.
• Authenticity Checks: Some platforms, like StockX, Goat, and Farfetch, authenticate goods before they reach the buyer.
• Customer Service Support: Make sure the platform offers real customer support with dispute resolution.
• Refund & Return Policies: A good vetted platform will guarantee refunds for defective or misrepresented products.

Why This Matters in a Tariff-Affected Market

• As tariffs increase, counterfeit goods, fake discounts, and scam websites will try to take advantage of consumers looking for deals.
• Vetted marketplaces offer a safer shopping experience by preventing scammers from exploiting the situation.
• Consumers who buy from trusted, verified sellers can avoid losing money on fake products or bad deals.

By using social and shopping apps that manually vet sellers, consumers can shop smarter, avoid scams, and still find quality products even as tariffs impact prices.