Inside and outside the U.S., tariffs are on a lot of minds. Despite what some people believe, tariffs are basically taxes on imported goods that are paid by the importer. And then the importer usually passes the cost on to the consumer. The impact on business worldwide is already considerable.
If you’re a digital nomad, though, and don’t produce any goods, could that have any impact on your work? Unfortunately, yes. The effects of global tariffs don’t stop at the border, and you’re likely to feel it wherever you are in the world (albeit less severely than in the U.S.). Here are three things digital nomads might experience, thanks to the new tariffs.
1. Rising tech costs
The keyword in “digital nomad” is digital. As a digital nomad, you probably rely heavily on your laptop, smartphone, tablet, and other electronic gadgets. While certain consumer electronics and components have received an exemption from most of the tariffs on goods moving from China to the U.S., you can still expect a reshuffling of the global supply chain that could impact the prices of electronics purchased in other countries as well.
2. Currency volatility
Tariffs, particularly the kind of global and constantly changing tariffs we’re experiencing now, can lead to currency volatility — sudden changes in currency values. Some countries strongly encourage digital nomads to perform business using the local currency, some international clients prefer to pay in their own currency, and digital nomads who rely on U.S. dollars could find the value of their work shifting with every change in the exchange rate.
3. Travel challenges
High tariffs on fuel, plane parts, and other necessities for air travel can potentially increase the cost of airfare. And airlines facing higher operating costs could choose to offer fewer flights or fewer routes, even for non-U.S. travel. Factor in potential hiccups like delays going through Customs, and both prior preparation and flexibility become key as you plan for future air travel.
What can a digital nomad do to prepare?
With assorted trade deals under negotiation and current tariffs prone to change, it’s hard to make real, concrete preparations for the future. But digital nomads can take this opportunity to review your setup and change-proof it as much as possible.
Update any tech devices that might need replacing in the near future. Keep an eye on the value of any currency you do business in — you could even consider a multi-currency bank account. Look at any travel you have planned for the upcoming year (as a nomad, you might have a lot of it) and be aware of the potential for changes or delays that might otherwise take you by surprise.
And above all, don’t panic. The more governments are able to make mutually beneficial trade deals, the more stability you’ll be able to expect in your digitally nomadic career.
