For the first time since Trump’s return to the Oval Office, it’s not a question of what could get more expensive due to tariffs but rather a matter of when. And the short answer to what could get expensive is, well, everything.

Assuming Trump proceeds with the plans he laid out on Wednesday — and he has said there is no room for negotiation — only certain goods from Mexico and Canada have a shot at avoiding any tariffs. Otherwise, all countries’ goods will be subject to a minimum 10% tariff, with rates going much higher for 60 countries the administration deems the “worst offenders” in terms of trade barriers.

At the very top of that list is China. Come April 9, the US will impose a 54% tariff on nearly everything coming from China. And rates go even higher, to 79%, if Trump follows through with his promise to slap an additional 25% tariff on any nation that buys oil from Venezuela, which China has done.

And then starting on May 2, the 54% tariff rate will also be applied to packages worth less than $800 coming to the US from China and Hong Kong. (Think Shein, Temu and AliExpress.)

In total, the average American household will pay $2,100 more per year for goods because of the tariffs, the nonpartisan Tax Foundation estimated.

The ‘worst offenders’

The United States imported $439 billion worth of goods from China last year, the second top source of imports behind Mexico.

Among the other “worst offenders” that the US relies heavily on for imported goods are Vietnam, which will face an across-the-board 46% tariff; and Taiwan, which will be subjected to a 32% tariff rate.

Vietnam was the sixth top source of goods the US imported last year and Taiwan was the eighth, according to US Census Bureau data.

Since tariffs are a tax on imported goods, it’s American businesses that will have to foot the bill initially when goods from these countries reach the US. But it’s not always the case that businesses fully pass along the additional costs they’re responsible for. In some cases, they may have contracts set in advance with wholesale customers requiring them to sell to them at a given price. Or they may opt to keep prices lower relative to the additional cost they face in order to keep customers.

Even if more production shifts to the US, where Trump has repeatedly said tariffs are “zero,” it can cost more to produce the same goods that were purchased from abroad, which could lead to price hikes.

Having said that, here’s what has the potential to get most expensive from the new round of tariffs.

Risks to waiting

Bracing for inflation and flat growth

Apple is developing a new version of its Health app that includes an AI coach that can advise users on how to get healthier, according to Bloomberg’s Mark Gurman. Gurman first reported that something like this was in the works back in 2023, but now he says development is moving ahead, with the new features potentially coming as soon as spring or summer of 2026, with the release of iOS 19.4. The AI coach’s advice would be based on data from across users’ medical devices, and would reportedly include food tracking. The coach is currently being trained on data from staff physicians, with Apple looking to bring in additional doctors to record health-related videos. According to Gurman, this new service is tentatively called Health+.

If a $6,000 deposit recently landed in your bank account out of nowhere, you’re not alone.

While the Trump administration has stirred worries about potential cuts to Social Security, at least 3.2 million Americans are set to receive an increase in their benefits thanks to a rule finalized during the Biden years.

On January 5th, President Biden signed the Social Security Fairness Act, which repealed two statutes that reduced benefit payments to many public sector workers, including teachers and firefighters.

As of March 4th, more than 1.1 million Americans have already received retroactive payments, according to the Social Security Administration (SSA). So far, the average payment is $6,710.

However, not everyone on Social Security can expect such a huge bump in benefits, and the lack of awareness about this new rule has left some room for potential scams. Here’s what you need to know.

Eligibility and potential scams

Although many former government employees are set to benefit from this new rule, not everyone in the public sector is covered. The SSA clarified that “only people who receive a pension based on work not covered by Social Security may see benefit increases.”

According to the SSA, 72% of the state and local public sector workforce is ineligible because their payments were not covered by the two statutes that were repealed — the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).

WASHINGTON, March 27 (Reuters) – The U.S. Congressional Budget Office on Thursday projected significant increases in federal budget deficits and debt over the next 30 years, in part due to rapidly rising interest costs, as it sketched out sluggish economic growth and a shrinking workforce.
The CBO’s latest long-term budget projections show federal deficits accelerating to 7.3% of the economy in fiscal year 2055 from 6.2% in 2025. That is up from the 30-year average from 1995 to 2024 of 3.9%.

Core consumer inflation in Japan’s capital stayed above the central bank’s target and accelerated in March on steady gains in food costs, data showed on Friday, keeping alive market expectations of a near-term interest rate hike.

Service-sector inflation also perked up as rent prices rose ahead of the April start of Japan’s new fiscal year, backing up the Bank of Japan’s view that price pressures were broadening.

Millions of Americans rely on Social Security for their monthly income, and some recipients may be getting a pay bump starting in April 2025. The Social Security Fairness Act (Act) was passed on January 5, 2025, and includes an increase in income for certain individuals, including some teachers, firefighters, and police officers, and federal workers.

Here’s how it works.

What Is the Social Security Fairness Act?

The Social Security Fairness Act was signed into law and replaces the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). The focus of this new law is to help provide more Social Security income to certain workers who receive a pension based on work that was not covered by Social Security (a “non-covered pension”) because they did not pay Social Security taxes.

The previous laws reduced or eliminated Social Security benefits for workers who had a “non-covered pension.” With the new law in place, these workers will start getting compensation in the form of regular Social Security income, and some will see an increase in their monthly Social Security payments if they are already receiving Social Security income.

Discover Next: Social Security Benefits Might Be Harder To Qualify for in the Future: Here’s What You Need To Know

Who Gets a Social Security Pay Bump and How Much?

Many federal and state government workers in public service don’t have to pay Social Security taxes. But with the new law in place, these workers may be entitled to some Social Security income. This means that certain workers will see an increase in Social Security benefits, including some:

• Teachers
• Firefighters
• Police officers
• Federal employees (covered by the Civil Service Retirement System)
• Those who were covered by a foreign social security system

This affects about 3.2 million workers who had their Social Security benefits reduced or eliminated by the previous WEP and GPO laws. But not every public service worker will see a pay bump.

According to the Social Security Administration (SSA), only about 28% of public service and federal workers were previously affected by the old WEP and GPO laws — and will be the only ones seeing any pay increase. This is because most (72%) public service workers and federal employees work in jobs that require paying Social Security taxes.

How Much More Social Security Will You Get?

If you’re one of the 28% of public or federal workers who didn’t pay Social Security taxes when you were employed, you could see a small, or significant, pay increase. The amount you receive is based on the type of Social Security benefit received and how much your government pension is. In some cases, certain workers may see an increase of up to $1,000 or more in their monthly Social Security payments.

You may get retroactive pay as well. The new law went into effect on January 1, 2024, so you may see a large lump-sum paycheck from the Social Security Administration. So far, the SSA has paid out billions to over two million retirees, with average payments of over $6,000 per person.

Things to Know About The Social Security Fairness Act

If you believe you qualify for additional payments due to the new Social Security Fairness Act, you should get your retroactive payment soon, and begin seeing an increase in Social Security payments starting in April.

While this should happen automatically, if you’ve never applied for benefits due to WEP or GPO, you may need to apply for retirement, spouse’s, or survivor’s benefits. The date of your application might affect when your benefits begin and your benefit amount.

According to research by the Congressional Budget Office, the average pay increase is around $360 per month for workers previously affected by WEP and GPO. However, the actual amount you receive is based on your work history, type of benefit, and pension amount.

If you need help applying for Social Security benefits or have questions about whether or not the new Social Security Fairness Act will affect your pay, you can see your personal account details at ssa.gov or you can call the Social Security Administration directly at 1-800-772-1213.

A small short-term benefit could end up costing much more in the long run.

One of the biggest voting issues for seniors in last year’s U.S. Presidential election was Social Security. There’s good reason for that. The government program is essential to the budgets of millions of Americans. Roughly half of people age 65 or older receive 50% or more of their income from Social Security, according to data reviewed by the SSA.

President Trump appealed to these voters in his campaign by saying he would work to make sure they get the most possible from the program. That includes a proposal to eliminate taxes on Social Security benefits. Not only are taxes on Social Security income complicated, but they also present an additional financial burden on many households collecting benefits.

However, eliminating the tax on Social Security comes with some bad news for retirees too. As with everything in economics, there are some significant trade-offs.

Seniors are facing major benefit cuts, and the clock is ticking

It’s important to understand the current state of Social Security before diving into how President Trump’s proposal will impact seniors. As it stands, retirees are facing a major cut in benefits in the near future that will be much worse than any taxes most of them currently pay on benefits.

The government established a trust fund for Social Security in 1939. All of the taxes it collects on wages go into the trust fund, and all the benefits it pays out come out of the trust fund. In the meantime, it invests the excess cash held by the fund into stable government bonds to help the trust fund grow and support future benefits payments.

That system worked well as the population grew and the standard of living improved. More workers earning higher average wages resulted in a massive surplus.

However, the trust fund’s balance started shrinking near the end of the last decade as baby boomers retired and the workforce grew more slowly. The trust fund’s assets have shrunk by $260 billion since the end of 2018, falling to $2.54 trillion as of the end of last year. And the rate of decline is accelerating. Net assets fell over $100 billion last year.

Data by YCharts.

The Social Security Trustees estimate that if there aren’t any changes to the program, it will deplete the entire trust fund sometime in 2033. At that point, the tax revenue it brings in will only cover an estimated 79% of retirement benefits.

In other words, seniors are facing a permanent 21% haircut on their Social Security benefits in just a few years without substantial Social Security reforms.

Most people won’t pay that much in Social Security taxes

Social Security taxes are extremely complex, but the long and short of it is that most households will pay less in taxes each year than what a 21% cut to benefits entails.

The government determines how much, if any, of your Social Security benefits count as taxable income based on a metric called “combined income.” Combined income adds half of your Social Security benefits to your adjusted gross income and any untaxed interest income from the year.

If your combined income exceeds certain thresholds, you’ll pay income taxes on up to 85% of your benefits, as detailed below.

Data source: IRS.

You might think those thresholds are extremely low, and they are. That’s because those numbers haven’t been updated for inflation since they were put in place more than 30 years ago. However, since Social Security benefits get an annual COLA tied to inflation, more and more seniors are facing tax bills on their Social Security benefits. That makes Trump’s proposal to eliminate those taxes increasingly appealing.

However, it’s worth noting that, when compared to the existential challenge facing Social Security and the potential 21% cut in benefits across the board, the current taxes aren’t that bad. The top quintile of households pay an average of 20% in taxes on their benefits, according to The Center on Budget and Policy Priorities. That corresponds with an income of more than $205,800. Lower-income households that rely heavily on Social Security don’t face a significant, if any, financial burden from taxes on benefits. The bottom 40% of senior households by income pay an average of less than 1% in taxes on Social Security.

Here’s the real bad news

Remember, the Social Security trust fund only has two sources of revenue: the interest it collects on the bonds it invests in and tax revenue. While most of that tax revenue comes from earned income, a significant portion comes from the income taxes it collects on Social Security benefits.

That means Trump’s proposal to eliminate taxes on Social Security income will reduce the amount the trust fund brings in. And with less coming into the fund and the same amount going out, its depletion will accelerate. A study from the University of Pennsylvania’s Wharton School of Business estimates ending taxation on benefits will reduce revenue by $1.45 trillion over the next 10 years.

As a result, retirees can expect the Social Security trust fund to run out of money even sooner if Trump successfully eliminates taxes on benefits. On top of that, such a move will require deeper benefits cuts once the trust fund’s assets are depleted because it will have less revenue coming in as well. So, seniors are facing the potential of a much bigger burden on their household budgets in just a few years than taxes present right now. That will hit low-income households, which rely on Social Security benefits, much harder.

It’s important to note that maintaining taxes on Social Security isn’t going to fix the program’s challenges. The government needs to make wide-ranging reforms to ensure the health and longevity of Social Security. But eliminating taxes on benefits will move it in the wrong direction and largely serves to benefit high-income households in the short run.

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.

In contrast to all that, many investors prefer to focus on companies like Visa (NYSE:V), which has not only revenues, but also profits. While this doesn’t necessarily speak to whether it’s undervalued, the profitability of the business is enough to warrant some appreciation – especially if its growing.

Visa’s Earnings Per Share Are Growing

If you believe that markets are even vaguely efficient, then over the long term you’d expect a company’s share price to follow its earnings per share (EPS) outcomes. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Impressively, Visa has grown EPS by 18% per year, compound, in the last three years. If the company can sustain that sort of growth, we’d expect shareholders to come away satisfied.

Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it’s a great way for a company to maintain a competitive advantage in the market. Visa maintained stable EBIT margins over the last year, all while growing revenue 10% to US$37b. That’s a real positive.

The chart below shows how the company’s bottom and top lines have progressed over time. To see the actual numbers, click on the chart.

View our latest analysis for Visa

Are Visa Insiders Aligned With All Shareholders?

Owing to the size of Visa, we wouldn’t expect insiders to hold a significant proportion of the company. But we do take comfort from the fact that they are investors in the company. Indeed, they have a considerable amount of wealth invested in it, currently valued at US$254m. We note that this amounts to 0.04% of the company, which may be small owing to the sheer size of Visa but it’s still worth mentioning. So despite their percentage holding being low, company management still have plenty of reasons to deliver the best outcomes for investors.

Does Visa Deserve A Spot On Your Watchlist?

If you believe that share price follows earnings per share you should definitely be delving further into Visa’s strong EPS growth. This EPS growth rate is something the company should be proud of, and so it’s no surprise that insiders are holding on to a considerable chunk of shares. On the balance of its merits, solid EPS growth and company insiders who are aligned with the shareholders would indicate a business that is worthy of further research. What about risks? Every company has them, and we’ve spotted 1 warning sign for Visa you should know about.

Although Visa certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of companies that not only boast of strong growth but have strong insider backing.

Dolby Laboratories, Inc.’s (NYSE:DLB) price-to-earnings (or “P/E”) ratio of 29.6x might make it look like a strong sell right now compared to the market in the United States, where around half of the companies have P/E ratios below 17x and even P/E’s below 10x are quite common. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s so lofty.

With earnings growth that’s superior to most other companies of late, Dolby Laboratories has been doing relatively well. The P/E is probably high because investors think this strong earnings performance will continue. If not, then existing shareholders might be a little nervous about the viability of the share price.

Want the full picture on analyst estimates for the company? Then our free report on Dolby Laboratories will help you uncover what’s on the horizon.

What Are Growth Metrics Telling Us About The High P/E?

There’s an inherent assumption that a company should far outperform the market for P/E ratios like Dolby Laboratories’ to be considered reasonable.

If we review the last year of earnings growth, the company posted a terrific increase of 39%. As a result, it also grew EPS by 8.3% in total over the last three years. So we can start by confirming that the company has actually done a good job of growing earnings over that time.

Turning to the outlook, the next year should bring diminished returns, with earnings decreasing 8.3% as estimated by the two analysts watching the company. With the market predicted to deliver 14% growth , that’s a disappointing outcome.

In light of this, it’s alarming that Dolby Laboratories’ P/E sits above the majority of other companies. Apparently many investors in the company reject the analyst cohort’s pessimism and aren’t willing to let go of their stock at any price. Only the boldest would assume these prices are sustainable as these declining earnings are likely to weigh heavily on the share price eventually.

The Final Word

It’s argued the price-to-earnings ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.

We’ve established that Dolby Laboratories currently trades on a much higher than expected P/E for a company whose earnings are forecast to decline. Right now we are increasingly uncomfortable with the high P/E as the predicted future earnings are highly unlikely to support such positive sentiment for long. Unless these conditions improve markedly, it’s very challenging to accept these prices as being reasonable.

There are also other vital risk factors to consider and we’ve discovered 2 warning signs for Dolby Laboratories (1 is a bit unpleasant!) that you should be aware of before investing here.

Of course, you might also be able to find a better stock than Dolby Laboratories. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.