Pour Some Tea. We're Talking Tariffs.
Anyone else have an American Girl doll, and all of her books, somewhere in storage? Mine was Felicity. Lately I’ve been thinking about her mom (stay with me). How did she explain “taxation without representation” so clearly –– without ChatGPT, push alerts, or podcasts?
If you've been hearing the words "reciprocal tariffs" and "liberation day" and wondering what the eff is going on ... it might be a while before Felicity's mom weighs in. But, we've got you. Let's break it down.
What is “liberation day”?
President Trump’s branding for a big tariff announcement that he’s expected to make this Wednesday.
I know what a tariff is, but I want to hear you say it.
Tariffs = taxes on foreign goods coming into a country. They’re paid by the importing companies, and then usually passed on to us in the form of raised prices.
Right. So, what are we being liberated from?
Trump explained in a post on Truth Social that, “FOR YEARS WE HAVE BEEN RIPPED OFF BY VIRTUALLY EVERY COUNTRY IN THE WORLD,” and added, “BUT THOSE DAYS ARE OVER.” Basically, he’s saying “you tax our stuff, we’ll tax yours.”
Why didn’t we do this before?
In the past, the US has avoided putting “reciprocal” tariffs on allies to promote friendly trade — which also tends to keep prices lower for US consumers.
And what’s happening on Wednesday?
It sounds like Trump is planning to raise tariffs on “all countries,” but the “what” and “by how much” are unclear. This announcement will be in addition to a bunch of new tariffs already in place.
Will this raise prices?
Probably. Earlier this month, The Budget Lab at Yale University estimated that previously announced US tariffs on Canada, Mexico, and China would amount to a loss of about $1,600 a year for the average US household. Since that calculation, some of those tariffs have been delayed or changed, so it's hard to say definitively what the impact of all of this on our wallets might be.
Is there anything I should do to prep?
A few things. Keep contributing to your emergency fund. If there are any big purchases that you need to make — like a car, furniture, a laptop, an American Girl doll — now is the time.
— “BRB, Pitching Tariff American Girl,” Anna Davies, staff writer
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What does "free trade" mean?
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“I Saved for a Car”
President Trump recently announced a 25% tariff on foreign cars and car parts. This could raise the cost of autos within the next few weeks. That goes for American cars, too –– they all include parts that come from other countries.
That’s why we loved this tip from Skimm Money reader Bridger R., from Royal Oak, MI:
“I always include a $300 car loan in my monthly budget — even if I'm driving a paid-off car. When there’s no actual loan to pay, that money goes straight into savings for a future down payment. It keeps me honest with spending and helps me avoid lifestyle creep. My first car was a hand-me-down 2007 Camry I inherited from my grandmother when she passed away, and I drove it from 2015 to 2023. That whole time I had been paying my ‘car loan’ in my budget, so I had over $25k set aside for my next car!”
“I Saved for a Car”
President Trump recently announced a 25% tariff on foreign cars and car parts. This could raise the cost of autos within the next few weeks. That goes for American cars, too –– they all include parts that come from other countries.
That’s why we loved this tip from Skimm Money reader Bridger R., from Royal Oak, MI:
“I always include a $300 car loan in my monthly budget — even if I'm driving a paid-off car. When there’s no actual loan to pay, that money goes straight into savings for a future down payment. It keeps me honest with spending and helps me avoid lifestyle creep. My first car was a hand-me-down 2007 Camry I inherited from my grandmother when she passed away, and I drove it from 2015 to 2023. That whole time I had been paying my ‘car loan’ in my budget, so I had over $25k set aside for my next car!”
PS: Saving can be only half the battle – then you have to close the deal. Dreading your visit to the dealer? Follow our script for negotiating down the price of a car.
23andMe Is Bankrupt. Time to Lock Down Your Data.
23andMe went from a multi-billion dollar health tech unicorn to bankruptcy court in a matter of years. Now, the company is looking for a buyer, and that means your genetic and ancestral data is up for grabs.
Here’s what’s going on, and why it matters if you sent them a spit tube ...
Why did 23andMe go bankrupt?
Despite a lot of hype and $$$ valuations, the company never managed to turn a profit. Plus, a 2023 data breach badly damaged its rep with consumers, and it’s struggled to rebound ever since. 23andMe is still in business, but bankruptcy gives its leadership the chance to restructure their debt and look for a buyer.
What does this mean for me and my 1.3% Neanderthal DNA?
Your genetic data is one of the company’s most valuable assets. According to their privacy policy, personal information “may be accessed, sold or transferred” in a bankruptcy.
What should I do?
Consider deleting your DNA info from 23andMe. Here’s how.
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