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their investments to continue to do well, be they retirement accounts or individual brokerage accounts, though many factors are out of their control.Experts explained what the average American investor needs to know about the impact of tariffs and inflation on your money next year.The hard reality is that high, across-the-board tariffs hurt everyone, according to John Lash, GVP of product strategy at e2open, a supply chain platform.“Despite the rhetoric, these tariffs are a tax paid for by American consumers, plain and simple. The same goes for retaliatory tariffs by foreign nations on U.S. exports. Higher taxes mean higher prices,” he said.While tariffs themselves are not inherently bad when used sparingly to protect the economy, he warned, “When used indiscriminately, tariffs become a blunt tool — more like an economic cudgel.”Learn More: I Asked ChatGPT What Trump’s ‘Big Beautiful Bill’ Means for Retirees’ Taxes: Here’s What It SaidTariffs could affect your savings in three main ways, according to Bradley Thompson, CFA, a financial professional with New Canaan Group in alliance with Equitable Advisors.Your short- and long-term spending, and therefore how much of your income you can save.The amount of interest you receive from your current savings.The value of your investment savings.Inflation also affects savings through rising prices and the way people spend money. “You’re seeing this already through a combination of anecdotal evidence and real data, for example in the used car market. Higher auto prices played a role in offsetting lower energy costs in last week’s PCE numbers as consumers moved forward purchases of cars to avoid higher prices later,” Thompson said.He added that a significant portion of gains on savings comes from treasury interest. “If rates are cut at the same time prices are higher it could doubly impact the savings/spending rate of retirees.”Consumers with high accumulated cash balances in high-yield savings or money markets should look to lock in higher rates now for savings they don’t need soon.If higher inflation plus tariffs continue to drive consumer behavior, it could lead to a self-perpetuating problem, Thompson warned.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,370.86 -18.91 (-0.30%)Dow 3044,632.99 -204.57 (-0.46%)Nasdaq21,098.29 -80.29 (-0.38%)Russell 20002,242.96 -13.77 (-0.61%)VIX15.98 +0.95 (+6.32%)Gold3,324.30 +14.30 (+0.43%)PortfolioSign in to access your portfolioSign inTop gainersNEGG Newegg Commerce, Inc. 56.19 +17.11 (+43.78%)SANM Sanmina Corporation 120.76 +22.42 (+22.79%)CVLT Commvault Systems, Inc. 193.27 +29.84 (+18.26%)AMKR Amkor Technology, Inc. 25.08 +3.85 (+18.13%)PII Polaris Inc. 57.81 +8.33 (+16.84%)Top losersNVO Novo Nordisk A/S 53.94 -15.06 (-21.83%)STEM Stem, Inc. 15.17 -3.74 (-19.78%)HRI Herc Holdings Inc. 123.61 -26.27 (-17.53%)EXEL Exelixis, Inc. 36.94 -7.45 (-16.78%)QS QuantumScape Corporation 9.28 -1.70 (-15.48%)Most activeSOFI SoFi Technologies, Inc. 22.40 +1.38 (+6.57%)NVDA NVIDIA Corporation 175.51 -1.24 (-0.70%)LCID Lucid Group, Inc. 2.5600 -0.2300 (-8.24%)NVO Novo Nordisk A/S 53.94 -15.06 (-21.83%)AMD Advanced Micro Devices, Inc. 177.44 +3.78 (+2.18%)Earnings eventsTrending tickersNVO Novo Nordisk A/S 53.94 -15.06 (-21.83%)SOFI SoFi Technologies, Inc. 22.40 +1.38 (+6.57%)PANW Palo Alto Networks, Inc. 193.84 -10.66 (-5.21%)UNH UnitedHealth Group Incorporated 261.07 -21.05 (-7.46%)PYPL PayPal Holdings, Inc. 71.45 -6.77 (-8.66%)Top economic events