As President-elect Donald Trump takes office for the second time, many Americans want to know how his policies will impact their personal finances. The new administration may bring significant changes in tax policies, trade regulations, and deregulation measures.
The US economy is currently experiencing positive signs, with inflation rates at 2.7% and unemployment low at about 4.2%. However, many voters were concerned about high costs of living, such as housing and food prices. Rent has increased by 19% since 2019, and US food prices have risen by 25% over the same period.
President Trump’s policies could lead to higher everyday costs due to trade tariffs. He plans to impose a 10% tax on imported goods from China and 25% on goods from Mexico and Canada. This could increase government revenue but may also lead to price increases on everyday goods, potentially negating any potential tax savings.
Deregulation measures under Trump’s administration could benefit businesses and consumers by reducing costs. However, this could also harm consumer protection, leading to increased borrowing costs and strain on household budgets. The Consumer Financial Protection Bureau (CFPB) may see changes in leadership, which could impact its regulatory power.
The healthcare sector is another area where Trump’s policies could have a significant impact. He aims to reduce healthcare and prescription drug costs by increasing transparency and promoting competition. However, his administration may also explore privatization of Medicare, potentially leading to higher premiums and fewer choices for seniors.
Ultimately, how Trump’s policies will affect the economy and individual finances remains uncertain. As President-elect, he has vowed not to cut Medicare and to help Americans get healthcare without excessive costs. However, the specifics of his plans and their implementation timeline are yet to be determined.
Source: https://www.nasdaq.com/articles/heres-what-could-happen-your-money-trumps-first-40-days-office