Tariffs in Real Time: The Riveras’ Story

I have heard from several clients lately over concerns of Tariffs. Many are either scared or concerned about how their own lives can, or sometimes already are, being affected. It is easy to point out higher prices everywhere we turn. I wanted to share a story about a couple, their names have been changed to protect their privacy, but their story plays out a lot like many others. While I will not get into the politics involved, tariffs are here, they are real and any positive results that may or may not come from them will only be found after some short term pain.

Mark and Elena Rivera are in their mid-forties, raising two kids in a modest home outside Richmond. Mark owns a small metal fabrication business. Elena teaches middle school English. They live within their means, but there’s not a lot of margin once the mortgage, groceries, and college savings are covered.

 This year has been harder than most. When the new tariffs on imported steel and aluminum were announced earlier this summer, Mark’s costs spiked almost immediately. A shipment of raw material that cost him $42,000 last spring now runs closer to $50,000. His profit margins, which were already thin, are being squeezed from every direction.

Elena sees it in his face when he comes home from the shop. He doesn’t complain, but the tension is there. He’s trying not to raise prices on his contractors, afraid they’ll take their business elsewhere. At the same time, he can’t keep eating the costs. The uncertainty makes it hard to plan. Some nights he lies awake wondering how long he can keep paying twelve employees when his balance sheet is bleeding. 

At school, Elena hears parents talk about the rising cost of everything from groceries to gas, and she knows they’re feeling the same pinch. Her paycheck hasn’t gone up in years, but their grocery bill has. Even small luxuries, like going out for pizza on Fridays, now feel like a budget decision.

For the Riveras, this isn’t an abstract policy debate on cable news. It’s showing up in the bills on their kitchen table. Their summer trip to the beach was canceled, and instead of replacing their 12-year-old van, they’re hoping it can last another year. Mark sometimes skips his own paycheck for a week to make sure payroll clears for his crew.

Still, he hasn’t given up hope. If domestic suppliers can ramp up production, if contractors begin to accept higher prices as normal, things might even out. In the long run, there’s a chance his business could become less dependent on foreign steel, more tied to local suppliers, and stronger for it. But that stability hasn’t arrived yet. Right now, it feels like holding their breath, waiting for the other shoe to drop, or for a break to finally come.

The Riveras’ story is playing out in households across the country. Tariffs meant to protect industries at home are creating short-term pain for families like theirs. The promise of long-term gain is there, but for now the reality is higher bills, tighter budgets, and a lot of uncertainty.

Financial Lessons for Today’s Families

Economic shifts like tariffs are outside of anyone’s control. What families can control is how they prepare for the ripple effects. The Riveras’ situation highlights several lessons worth considering:

1. Emergency savings matter more than ever. Having three to six months of expenses set aside can make it easier to absorb sudden increases in costs without derailing household stability.
2. Diversifying income streams creates resilience. Mark relies heavily on steel imports, which makes his business vulnerable to policy changes. Families can think about diversification too, whether that’s through side income, investment strategies, or insurance planning.
3. Cash sitting idle loses power over time. Just as Mark’s money tied up in expensive materials strains his margins, families with savings parked in low-yield accounts may not be keeping up with inflation. Exploring investment accounts, annuities, or other vehicles could help money work harder.
4. Plan for uncertainty. Policy changes, inflation, and market volatility are all part of today’s reality. Having a financial plan that anticipates bumps in the road gives confidence even when the present feels uncertain.

The Riveras’ story reminds us that today’s challenges are temporary, but the right planning can turn financial strain into future strength. The best time to prepare isn’t after the crisis passes, but while you’re living through it.

In a world that evolves almost s fast as it revolves, the only certainty can be that the future is uncertain. One of my favorite sayings is, "It's their sandbox, I just play in it." I think that sums up the situation in a nutshell. What we each do have control over, is how we play in the sandbox. We could bury our head in the sand and hope for the best, although I have doubts as to the success rate on that one, or we can learn to play in a way that helps us secure our spot. Make a plan, follow the plan and make the most of our playtime. 

Find the right financial professional to help you setup a plan that can help you weather the uncertainty, one that can evolve with the world around you, one that can help even out the peaks and valleys. Choose to build the best castle in the sandbox.