Tariffs For Dummies: What They Are And How Will Affect Me?

Imagine you own a small business selling cool new tech gadgets, but suddenly, the price of every part that you import shoots up why? TARIFFS.

If you don't know what tariffs are or how they can mess with your business (or even your food bill), don't worry I got your back. This your TARIFFS FOR DUMMIES LIKE ME GUIDE to understanding tariffs and preparing for the upcoming 2025 tariff war like a pro.

WHAT THE HECK ARE TARIFFS?

In simple terms, tariffs are taxes on stuff that comes into a country from another country. The government slaps these taxes on imported goods to make foreign products more expensive. The idea is that if imports cost more, people will buy local products instead.

Sounds simple right? Not so fast. Tariffs can make prices go up for everyday things like phones, electronics, cars and even food. And when countries are fighting over tariffs, things can get ugly fast.

THE DIFFERENT TYPES OF TARIFFS ( AKA THE WAYS THE GOVERNMENT MESSES WITH PRICES)

1) AD VALOREM TAXES

A fancy way of saying a tax based on a percentage of the items value. Example a 10% tariff on imported steel means if steel costs $100 you pay an extra $10 in tariffs.

2) SPECIFIC TARIFFS:

A flat fee per unit. Example if there is a flat fee per imported sneaker say $5, it does not matter if the shoe costs $10 or $200 you still pay the five bucks.

3) PROTECTIVE TARIFFS:

These are put into pace to protect local businesses by making foreign products more expensive. Example a high tariff on foreign cars should make people more likely to buy American cars.

4) RETALIATORY TARIFFS:

Sound familiar? This is when one country gets mad at another for putting tariffs on their goods, so they hit back with their own tariffs. Think of it as a trade war slap fight.

WHY SHOULD YOU CARE ABOUT TARIFFS IN 2025?

Because there is z tariff war brewing!

Back in 2018, the U.S and China went head to head in a major trade battle. We slapped tariffs on $250 BILLION worth of Chinese goods. China fired back hitting our farmers and manufacturers hard. The Result?

Electronics got pricier (hello expensive IPhones) Farmers lost billions because their exports got suppliers hit with counter tariffs. Businesses scrambled to find new suppliers.

Fast forward to 2025, and it looks like history is about to repeat itself only this time it could be worse.

WHAT IS CAUSING THE 2025 TARIFF WAR?

1) Politics & Elections: New leaders, new policies, new trade wars.

2) Made In America Policies: Governments want to push local manufacturing.

3) Global Drama: US China tensions, European trade shifts, and economic nationalism.

WHO IS GONNA GET HIT THE HARDEST?

If your job, business, or wallet depends on any of these industries, buckle up:

1) Manufacturing:

If you make cars, machines, or electronics, your raw materials (like steel, and aluminum) are about to get pricier. Expect supply chain issues as companies look for new, cheaper suppliers.

2) Technology:

Laptops, smartphones, and other gadgets? say hello to higher prices. Big companies like Apple, Dell Technologies And Intel Corporation may shift production to avoid tariffs, causing delays.

3) Agriculture:

Farmers selling soybeans, wheat, or dairy might get caught in the crossfire. If China (or another country) slaps tariffs on our farm goods, exports could drop fast.

4) Retail:

Stores that rely on cheap imports (clothing, appliances, furniture) could raise prices. Small businesses might struggle to compete with big name retailers who can absorb the costs.

HOW TO SURVIVE THE 2025 TARIFF WAR LIKE A BOSS:

Now that you know tariffs are coming for your wallet, here is how to stay ahead of the game.

1) FIND NEW SUPPLIERS NOW! (ASAP)

If your business relies on China, Europe, or anywhere with high tariffs, start looking for alternative suppliers.

Southeast Asia, Latin America, and even domestic suppliers might be safer bets.

2) NEGOTIATE BETTER DEALS:

Talk to your suppliers now. See if yu can get a better deal before prices get jacked up. Some suppliers might even share tariff costs t keep you as a customer.

3) STOCK UP BEFORE PRICES SPIKE:

If you know tariffs are coming, buy extra inventory before the new taxes hit. It is like buying in bulk before the hurricane hits, except this storm lasts for years.

4) LOOK FOR LOOPHOLES:

Some products may qualify for tariff exemptions check if yours does. Some countries have trade agreements that could save you money (USMCA,ASEAN; ETC)

5) RAISE PRICES THE SMART WAY:

If your costs go up, you might have to increase prices but do it gradually to keep customers happy. Cut unnecessary expenses first so you do not pass the entire cost to consumers.

6) GO HIGH TECH OR GO HOME:

Consider reshoring production (bringing it back home) and investing in automation. Government incentives may help you offset costs.

7) KEEP UP WITH THE NEWS:

Policies change so fast, stay updated by following (WTO) World Trade Organization, (USTR) U.S Trade Representative, Industry newsletters, and business reports. Knowledge is power, knowing what's coming gives you an advantage.

SSSSSSSSSSOOOOOOOOOO..........

Tariffs are not just something governments argue about, they affect real businesses, real prices, and real people like you and me.

The 2025 tariff war will hit ALL CATEGORIES AND NICHES, but smart businesses will find ways to thrive and survive.

YOUR MOVE? Prepare NOW! Find new suppliers and keep an eye on trade policies.The companies that adapt the fastest will come out on top. Will yours?

How is you business preparing for the 2025 tariff war? What strategies are you using to stay ahead? Drop your thoughts in the comments below.

AS ALWAYS THANK YOU FOR BEING A HUGE PART OF OUR SUCCESS AND LETTING US BE A SMALL PART OF YOURS.

Your Friend and Coach,

Richard Kaufman

P.S DO NOT MISS TODAY's Episode of The www.verticalmomentumpodcast.com with special guest Kareen Zahr Walsh