With a big election on the horizon, many voters are thinking about how the outcome could impact their wallets. Former President Donald Trump is making some bold promises: growing the economy, lowering prices, and even bringing down interest rates.
But while these ideas sound great, experts are raising concerns about some of his proposed financial policies. Here are four of Trump’s financial proposals that some believe could have serious consequences for everyday Americans.
1. A 10% Tariff on Everything
During his first term, Trump put tariffs on many imports, including aluminum and steel. But now, he’s proposing something much bigger: a 10% tariff on all imports into the U.S., and an even higher 60% tariff on goods from China.
While it sounds like a move to protect American jobs, experts are worried about how it will affect prices. A 10% increase on all imports means everyday goods — from food to electronics — could get more expensive.
Dr. Adnan Rasool from the University of Tennessee points out that this policy could hit low-income Americans hardest, especially those who rely on affordable stores like Walmart.
According to a study by the Center for American Progress, the average middle-income family could see costs rise by as much as $2,500 per year. If the tariffs go up even higher, as some suggest, that number could jump to $3,900 a year.
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2. More Tax Cuts, But Mostly for the Wealthy
In 2017, Trump signed the Tax Cuts and Jobs Act (TCJA), which was a big win for his administration. Now, he’s proposing even more tax cuts. However, analysts say these cuts would mostly benefit high-income households while adding trillions to the national deficit.
David Fritch, a CPA and former investment advisor, explains that while these tax cuts were advertised as relief for the middle class, they mainly helped the wealthy. Plus, they added over $1 trillion to the deficit, putting programs like Social Security at risk.
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3. Immigration Crackdown Could Lead to Higher Prices
Trump’s tough stance on immigration isn’t just about border security — it could have financial implications too. He has promised to carry out the largest deportation effort in American history, targeting millions of undocumented immigrants.
While many Americans support stronger borders, experts warn that mass deportations could worsen labor shortages and push prices even higher. Fewer workers in industries like agriculture and construction could lead to rising costs for everything from groceries to housing.
As David Fritch points out, Trump’s policies often seem good on paper, but the real-world impacts can hurt the very people they aim to protect.
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4. Devaluing the U.S. Dollar
Another surprising move Trump is considering is devaluing the U.S. dollar. This would make American exports cheaper, boosting domestic manufacturing and potentially reshaping the global trade landscape.
But there’s a downside. A weaker dollar could also lead to rising inflation, driving up prices on imported goods and making life more expensive for American consumers. While boosting exports is a good goal, this policy might cause more harm than good in the short term.
David Fritch stresses that sweeping changes like these often have unintended consequences. Bold moves need to be carefully rolled out to avoid negative effects on the people they’re meant to help.
While Trump’s proposals aim to shake up the economy, experts warn that some of these policies could backfire. It’s important for voters to understand the risks and rewards before casting their ballots, especially when their finances are on the line.