President-elect Donald Trump is set to take office for a second term, bringing big changes to the economy. While he has promised a shift in the economy, it may not be in the way people expect. Instead of more money in the pockets of Americans, things could get more expensive.
Trump’s proposed tariffs on global imports are expected to increase prices of everyday household items. For example, electronic devices from China could become 46% more expensive, making them less affordable for middle-class families. Appliances like refrigerators and dishwashers could also see a price rise of up to 19%.
The impact of Trump’s policies will be felt across various sectors, including healthcare and insurance coverage. Middle-class families can expect higher premiums, reduced health benefits, and increased prescription drug prices.
Higher education costs are also expected to rise under Trump’s administration. Federal student loan interest rates may increase, income-driven repayment plans could become more restrictive, and public university funding might decrease.
Homebuyers will face financial challenges despite Trump’s promise of more affordable housing. Mortgage rates could climb, first-time homebuyer programs might be cut, and property taxes could increase in middle-class neighborhoods.
The transportation sector is also expected to feel the pinch. Gas prices may rise due to international trade policies, public transportation funding might decrease, and electric vehicle tax credits could be eliminated under the Trump administration.
While nobody can predict exactly what policies Trump will enact once he returns to the White House, one thing is clear: significant changes are on the horizon if his planned tariffs are imposed.
Source: https://finance.yahoo.com/news/4-things-middle-class-likely-140030566.html