Trump’s Tariffs, The “Big Beautiful Bill”: What’s Real, What Hurts, and Where Families Can Win

If you’ve been watching the news, you’ve probably felt that familiar mix of frustration and fatigue. President Trump has rolled out a sweeping set of tariffs and signed what he proudly calls the “Big Beautiful Bill.”

Now, let me start with some honesty. There are many, many things in this bill—and in the tariff plan—that I deeply despise. I hate anything that makes life harder for hardworking families. And that’s exactly what tariffs tend to do: raise prices, stretch budgets, and force us to spend more just to keep up.

But here’s what I also know: resistance without strategy is wasted energy. We don’t get to pick the laws or the tariffs. But we do get to pick our response.

So let’s break it all down together.

Quick Quiz to Start

Before we dive into the details, let’s play a little game. Answer these in your head (or write them down). We’ll check the answers at the very end of this newsletter.

1. True or False: If you make $20,000 in reported tips this year, you can exclude them from all taxes.

2. Multiple Choice: You can only deduct auto loan interest if:
A) You bought any new car.
B) You bought a U.S.-assembled new car.
C) You lease a car.

3. True or False: The Child Tax Credit is now permanently $3,600 per child.

4. Fill in the Blank: Overtime deductions apply to the ______ portion of OT pay.

5. Multiple Choice: The Trump Account federal seed applies to:
A) Any child under 18.
B) Newborns in 2025.
C) Only children of small business owners.

(Answers at the very bottom—don’t peek just yet! 😉)

First: What’s Actually Happening

• Tariffs 101: A tariff is basically a tax on imported goods. Trump’s administration has slapped a 10% baseline tariff on most imports, and specific goods—especially from China—face higher rates (up to 60%). Some are in force now; others are under temporary truces.
  

• Why it matters: The last time the U.S. leaned heavily on tariffs (2018–2019), we saw soybean exports collapse, farmers needing federal bailouts, and U.S. manufacturers scrambling for new suppliers. Studies then showed the average U.S. household paid an extra $800/year due to tariffs. This time, the numbers could be higher if 60% tariffs on China expand.
  

• The Big Beautiful Bill (now law): Passed July 4, 2025, it makes several Trump-era tax cuts permanent, introduces new deductions for tipped and overtime workers, expands the Child Tax Credit, and launches “Trump Accounts” for kids.

What’s Hard (and Frankly, Infuriating)

Let’s name it: tariffs make life more expensive. Here’s where the pain shows up:

• Grocery Bills: Imported staples—olive oil, pasta, cheese, fruits—jumping 10–20%. For a family of four spending $250/week, that’s an extra $1,300 a year.
  

• Electronics & Appliances: Laptops, iPhones, washing machines—all pricier. Think about the cost of a teenager’s back-to-school laptop.
  

• Cars: Imported parts raise costs even on “American” cars, since so many rely on global supply chains.
  

• Small Businesses: Crafters on Etsy, boutique food makers, importers—all squeezed. Margins shrink, and many have no choice but to raise prices.
  

• Retirement Accounts: Global uncertainty = choppy markets. If you check your 401(k) daily, brace yourself—it may look like a rollercoaster.
  

And here’s the emotional toll: families are already stretched thin by housing, childcare, and healthcare costs. Adding tariffs feels like salt in the wound.

Where We Can Find Light

But here’s where I want you to lean in with me. Because hidden in the shadows of this bill are opportunities you can actually use.

1. “No Tax on Tips”

• Deduct up to $25,000 in tip income (2025–2028).

• Applies to waitstaff, bartenders, delivery drivers, hairstylists, valets—any job on the IRS “tipped occupations” list.
  

• 🔑 Why it matters: The average restaurant worker earns $12–15k in tips annually. This could cut taxable income nearly in half for many.

2. Overtime Pay Deduction

• Deduct the premium portion of OT (the extra ½ of time-and-a-half), capped at $12,500 single / $25,000 joint.
  

• 🔑 Why it matters: Nurses working 12-hour shifts and retail workers covering holidays often log 300+ OT hours annually. That’s real tax relief.

3. Auto Loan Interest Write-Off

• Deduct up to $10,000 interest on a new, U.S.-assembled car.
  

• 🔑 Why it matters: With auto loan rates above 7%, this is significant. On a $35k loan, you might save $1,500+ in taxes.

4. Child Tax Credit Boost

• Credit jumps to $2,200 per child, indexed for inflation from 2026.
  

• 🔑 Why it matters: For a family with 3 kids, that’s $6,600 in credits—direct reduction of taxes owed.

5. “Trump Accounts” for Kids

• New savings vehicles, with a $1,000 seed deposit for newborns in 2025.
  

• 🔑 Why it matters: Even if you only add $50/month, by age 18 that could grow into $20,000+ (depending on returns).

6. Small Business Wins

• Permanent QBI deduction and expanded expensing = more stability for entrepreneurs.
  

• 🔑 Why it matters: An LLC earning $100k can deduct up to $20k. That’s thousands in tax savings, year after year.

How to Apply This (Right Now)

• Families: Open Trump Accounts, claim the boosted CTC, and pad your grocery budget by 5–10% for tariff inflation.

• Workers: Use an app or journal to log tips and OT. This deduction is only as good as your documentation.

• Car Buyers: Confirm final assembly location before financing. Keep the loan amortization schedule for tax time.

• Small Businesses: Revisit entity type with your CPA. Permanent QBI rules mean more flexibility for planning compensation and deductions.

A Real-Life Example

Let’s imagine a family of four:

• Dad: works in hospitality, earns $18,000 in tips.

• Mom: a nurse logging heavy overtime.

• Two kids: ages 7 and newborn (2025 baby).
  

Here’s what changes:

• Dad deducts nearly all $18,000 in tips.

• Mom deducts $10,000 in OT premiums.

• Family claims $4,400 in Child Tax Credits.

• Baby qualifies for $1,000 Trump Account seed.
  

Result: This family could save $5,000–$7,000 in federal taxes in 2025 compared to prior years—enough to offset higher grocery bills, pad savings, or invest.

Najma’s Heart-to-Heart

Here’s what I need you to hold onto:

I am not here to sugarcoat. I despise much of this bill. Tariffs raise costs unfairly, and families like yours and mine pay the price.

But I am also not here to leave you helpless. Because in every storm, there are seeds you can plant.

And that’s the choice in front of you:

• Focus on the frustration—or

• Focus on the opportunities you can actually use to put money back in your pocket.

Remember: resilience isn’t about ignoring pain. It’s about facing reality, and still choosing action. 

Important Note

I am not your financial advisor. This newsletter is for education only. Please consult your CPA or tax professional before making any moves. Everyone’s situation is unique, and you deserve tailored advice.

Quiz Answers

1. False — you can deduct tips from income tax but still owe payroll taxes.

2. B — only U.S.-assembled new cars qualify, and leases don’t count.

3. False — the CTC is $2,200 per child in 2025, inflation-adjusted starting in 2026.

4. The “premium” portion of OT pay.

5. B — newborns in 2025 are eligible for the federal seed in Trump Accounts.

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Live Rich. Retire Rich.
And always remember: tariffs can raise prices, but they can’t tax your brilliance

Live richly. Rest deeply. Rise fully.
Najma Zanelli
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Founder, NAZ Global Consultancy
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