The new tariff policies implemented by President Donald Trump in the United States have had a profound impact on the corporate sector. Companies such as 3M and Kimberly-Clark have cut their 2025 profit estimates, as tariffs have increased raw material and supply chain costs. These companies produce household and personal care products such as cleaning products, diapers, and other essential items that are part of the daily lives of American households. The burden of these costs is likely to be passed on to consumers, which could put additional pressure on household budgets.
Impact on Personal Finances
Rising prices due to tariffs are a major challenge for American consumers. Products from companies such as 3M, which include adhesives and industrial supplies, and products from Kimberly-Clark, such as tissue paper and baby diapers, are everyday necessities. If their prices increase, households will have to reorganize their budgets. For example, the average American family that spends $100 a month on diapers and household items could now pay an additional 10-20%. This would impact other expenses, such as entertainment or savings. Furthermore, this price pressure could be more severe for low-income households, who are already struggling financially. In terms of investments, a decline in the share prices of these companies in the stock market could affect retirement funds or portfolios.
Correctional suggestions
Here are some practical steps for consumers to deal with this situation:
Re-planning the budget: Prioritize essential expenses and reduce unnecessary purchases. For example, use cheaper alternatives instead of branded products.
Buy in bulk: Buying household items in large quantities can reduce the cost per unit, especially if purchased at discount stores.
Find alternative brands: Choose local or low-priced brands that are good in quality but cheaper.
Investment diversification: Diversify your stock portfolio to avoid losses from specific companies. Consider investing in ETFs or bonds.
Financial planning: Consult a financial advisor to develop a long-term strategy to mitigate the impact of rising prices.
Frequently asked questions (FAQs)
1. How much could tariffs increase prices?
Depending on the impact of the tariffs, companies say they could increase product prices by 10-20%, especially on household and personal care items.
2. Will all companies raise prices?
Not all companies, but those that rely on imports, such as 3M and Kimberly-Clark, will be more affected and may raise prices.
3. How can consumers protect themselves?
Adjust budgets, find cheaper alternatives, and buy in bulk to reduce costs.
4. Will the stock market also be affected?
Yes, a decline in corporate profits could cause share prices to fall, which would affect investments and retirement funds.
5. Will these effects be permanent?
This depends on the duration of tariff policies and global trade conditions. If tariffs are reduced, prices could stabilize.
