Financial Uncertainty Ahead: 5 Ways a Second Trump Administration Could Impact Your Wallet
As President Donald Trump begins his second term, many Americans are wondering how his policies will affect their finances. From taxes to trade, here are five key areas to watch.
Tariffs: A Wildcard for Consumers
Trump’s campaign promises included tariffs on imports from Canada, China, and Mexico. While the impact on prices is still unclear, businesses will likely pass some of the cost to consumers. The administration’s review of trade relationships is underway, with a deadline of April 30.
Tax Breaks Expiring: What’s Next?
Unless Congress acts, trillions of tax breaks will expire at the end of the year, including lower tax brackets. Over 60% of taxpayers could see higher taxes in 2026 without extensions of provisions in the Tax Cuts and Jobs Act. Extending these provisions will be a heavy lift amid concerns over federal debt.
Social Security and Medicare: Cuts on the Horizon?
To keep Trump’s campaign promise to protect Social Security and Medicare, cuts to other health care programs may be necessary. House Republican lawmakers have identified $2.3 trillion in cuts to Medicaid, and subsidies to lower the cost of health insurance under the Affordable Care Act are also at risk.
Credit Card Interest Rates: A Possible Cap
Trump proposed a temporary 10% cap on credit card interest rates, which could benefit those with credit card balances. However, experts warn that this could also make it harder for people to get credit.
Market Volatility Ahead
With so many policy changes expected, experts predict market volatility in the coming year. To navigate this uncertainty, individuals should understand their personal financial situation and have a long-term plan in place.
By keeping a close eye on these key areas, you can better prepare for the financial implications of a second Trump administration.
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