iPhones vs. Surviving Trump’s Tariffs: Financial Strategists Share What Matters Most

While some are pinching pennies, others are rushing to cash in on the latest gadgets, like smartphones

As President Donald Trump dumped hefty tariffs on countries like China and U.S. allies, the backlash of increased prices is forcing consumers to choose between survival mode or luxury items, Fortune reports.

While some are penny-pinching, others are rushing to cash in on the latest tech gadgets like smartphones. As Trump put a 90-day “pause” of tariffs, some shoppers are being extra careful. One woman, who is retired, said due to recent events, she cut back on spending as a precaution.

“I live in an apartment. You can’t stockpile,” the anonymous woman said. “Things are going to keep going up, and we need the money to buy more food next week or the week after.”

For others, groceries are not the priority but more so catching up with the latest gadgets and styles before the price goes up. The new Trump tariffs will affect electronics made in China, with a 104% percent tax, while prices of Vietnam-made clothes will also see a price hike, thanks to a 46% tariff. Charles from Virginia said “tariffs are bad” but plans on picking up a new Apple iPhone in case prices rise.

Keith Taylor, 62, who also recently picked up a new iPhone, says this will be the last purchase. “That’ll be the last thing I purchase until all this gets settled out,” he said.

Households have already been squeezed by high post-Covid inflation in addition to tariff increases. Anastasia Nevin, a mother of two from New York, said she is in “survival mode.” Nevin added, “I have two kids, so I’m just trying to get by. It’s tough.”

LendingTree’s chief consumer financial analyst Matt Schulz says instead of panicking, he advises consumers to stick to their financial plan.

“Regardless of whether tariffs are implemented, your goals are still your goals,” he said, according to the Sacramento Bee. “You still need to invest in your retirement. You still may need to save money to buy a home, pay for your kid’s college education, or pay for a wedding.”

Despite U.S. Department of Agriculture Secretary Brooke Rollins saying this “will be a short time of uncertainty,” Clement Bohr, an economist at the UCLA Anderson Forecast, feels these tariffs are something that shouldn’t be taken lightly.

“It could be devastating to the economy,” Bohr said.

During these times of uncertainty, Schulz recommends planning accordingly over panicking overall.

“Panic leads to bad choices in all aspects of life, and money is definitely no exception,” he said. He advised consumers not to shy away from help in addition to setting up an emergency fund. If there is a need to make large purchases like a car, he feels that should be done sooner than later.

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