How Trump’s New World Economic Disorder Impacts Our Health and Pocketbook
- Brian Page
- May 17
- 6 min read
Updated: Jul 24
President Trump’s erratic tariff policy is deepening the financial and psychological strain faced by American families. Financial stress, already a driver of anxiety and depression, is now compounded by rising costs across essential categories like housing, food, transportation, and healthcare.
The financial stress we experience permeates throughout the stress we feel. As the cost of daily life becomes increasingly unpredictable, families, particularly working-class and lower-income households, are shouldering an ever-heavier mental and financial load.
Molly Dickens, PhD, is a stress physiologist and founder of The Maternal Stress Project. According to Dr. Dickens, “The brain seeks control and predictability. Lack of control and unpredictability trigger our body’s natural stress response system in a way that can affect our health. As tariffs continue to introduce unpredictability with less perceived control for family budgets, the extent of financial pressure and worry will likely exacerbate the growing mental health crisis amongst American adults.”
As Dickens explained, financial pressure and instability is a well known psychological stressor that can affect a range of chronic health conditions, including mental health. While socioeconomics and poverty directly affect social determinants of health – non-medical factors that affect short-term and long-term health – any degree of financial insecurity, at the most personal level, can relate to an individual’s stress levels. This stress is both objective (actual event) and subjective (perceived possibilities, worries). For example, job loss and related loss in income perpetuates mental health challenges associated with perceived financial stress.
As Dr. Dickens points out, ”financial pressure and instability extends across a range of pressures that are on the rise for American families. Every budget rebalance requires prioritization that may bring in emotional components, or new time demands, or concerns about the future. All of that is adding to our stress load and affecting our health.”
Projected Impact of Latest Tariffs on U.S. Consumer Costs by Budget Category
Jump Straight to the Budget Category
A tariff is a tax imposed by a government on goods and services imported from other countries and paid by the importer. Economists agree that tariffs lead to higher prices for consumers.
Any claims otherwise are nonsense.
Tariffs are a regressive tax, hitting ordinary folks with greater pain than wealthy folks because more of their disposable income is needed to purchase the daily necessities needed to live than the affluent.
Everyday families can use the following as a guide to project how the latest proposed tariffs will impact their household budget.
Housing
Tariffs on construction materials (like lumber, steel, aluminum, and drywall inputs) are driving up housing costs. Industry analysts estimate the new tariff package could push up new home construction costs by ~4–6% over the next year which translates into roughly an extra $17,000–$22,000 per newly built home on average.
Transportation
The 25% tariff on imported cars could raise sticker prices by roughly 10–25%, adding about $5,000–$15,000 to vehicles in the $20,000–$60,000 price range. Even American-made cars would get pricier because many components are imported; economists estimate U.S.-assembled cars might cost $3,000–$8,000 more each due to higher parts costs.
Vehicle maintenance will also be affected: tariffs on auto parts like tires (over 60% of which are imported) are steep – for instance, tires from certain Asian countries now face duties of 32–46% – and analysts expect tire prices to rise “substantially” as a result.
Food
The Yale Budget Lab estimates current tariff rates will cause U.S. food prices to rise about 2.6% in the short term, with prices eventually settling around 3% higher than they would be otherwise.
One food industry analyst noted “almost half of the products in a supermarket” could be affected in some way, either directly or via higher ingredient costs. Aside from direct food tariffs, indirect effects (like tariffs on energy or transportation equipment) can raise costs for food production and distribution.
Personal Insurance
Auto insurance is bracing for increases: actuarial analyses project auto insurance premiums will rise about 6–10% by the end of 2025 because of the surge in car repair costs under the new tariffs.
Another estimate forecasts that if all the tariffs take effect, the average annual car insurance bill would increase from roughly $2,300 to $2,750 per vehicle – that’s roughly a 19% jump in premiums that is directly attributable to the tariffs.
Healthcare
The U.S. health system depends on many imported products such as medical devices and pharmaceuticals. Many active pharmaceutical ingredients and generic drugs are sourced from abroad, including China and India. According to a Yale Budget Lab analysis, the prices of basic pharmaceuticals could rise nearly 5% as a result of the new reciprocal tariffs.
Hospitals and clinics import everyday necessities like gloves, gowns, syringes, IV bags, and larger equipment, often from trade partners like Mexico, Canada, Europe, and Asia. With the latest tariffs, many of these medical supplies now cost more.
In practice, higher supply costs will trickle down to consumers in various forms – insurance companies might hike premiums to cover rising hospital costs, and patients could see larger medical bills or co-pays.
The financial stress of medical expenses are not restricted to those who receive medical care. Family caregivers also experience mental health issues related to emotional burden of post-diagnosis economic hardship and perceived economic hardship.
Entertainment
Many forms of entertainment nowadays involve imported consumer electronics: televisions, gaming consoles, audio equipment, computers, and smartphones. Tariffs on these devices and their components can lead to significant price hikes for consumers.
The Consumer Technology Association analyzed the potential impact of the tariff plan and found that prices for popular electronics could jump markedly. For example, under a scenario combining a 10% general import tariff with steeper country-specific tariffs, laptops and tablets could see prices surge by as much as 45%. In dollar terms, a laptop that used to cost $1,000 might end up around $1,450 if those tariffs fully hit.
Video game consoles and smartphones, similarly, were projected to incur double-digit percentage price increases. This means the cost of buying a new iPhone, PlayStation, or big-screen TV would be noticeably higher for U.S. consumers.
Hobbies and recreation often involve imported products: sporting equipment, musical instruments, toys and board games, books, and even things like art supplies or photography equipment. Many of these items come from abroad and could face around 10–25% tariffs, so expect a few extra dollars on many leisure purchases.
Apparel & Services
Apparel is one of the most tariff-sensitive consumer categories, and clothing prices are expected to jump noticeably. The United States imports a large share of its apparel and footwear. New tariffs on textiles, clothing, and shoes from various countries will directly increase the retail prices of those goods.
Analysis by Yale’s Budget Lab finds that clothing and textiles will see disproportionately large price increases – in fact, apparel prices are projected to rise about 17% under the full suite of tariffs.
Notably, tariffs on apparel are regressive: lower-income families spend a larger share of their budget on necessities like clothing, so a double-digit percentage increase hits them hardest.
Education
Schools and universities purchase a lot of goods that now cost more: from imported technology and equipment for classrooms to construction materials for campus buildings, and even food for cafeterias. As one report noted, tariffs are hitting “nearly everything schools purchase” – meaning districts may have to pay 10-25% more for computers, lab equipment, school buses, and facilities maintenance supplies.
For students and families, one immediate impact is on the cost of educational technology and supplies. Laptops or tablets could see huge price increases – possibly 20–40% higher due to tariffs on electronics. For example, a laptop for a college student that used to cost $500 might cost $600+ after the tariffs.
Other Expenditures
The “Other expenditures” category covers a variety of miscellaneous spending not captured elsewhere – for example, personal care products (toiletries, cosmetics, haircuts), household supplies, reading materials, tobacco and alcohol, and other miscellaneous items. Many of these everyday items could see modest price increases due to tariffs on imports.
Next Steps
As Americans feel the weight of rising prices on everything from housing to health care, it’s easy to feel powerless, but there are steps families can take to regain some sense of control.
Track your expenses closely to understand where tariffs may hit hardest, and adjust your budget accordingly.
Prioritize essential spending and delay major purchases, especially in categories like cars, electronics, and clothing that are heavily impacted.
Lean on community resources, mutual aid groups, or financial counseling services if you're struggling.
Just as important, acknowledge the emotional toll of financial stress. Talk openly with loved ones, seek mental health support if needed, and remember that you’re not alone. While we can’t control global trade decisions, we can protect our well-being by responding with clarity, communication, and care.
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