2 weeks Ago
On April 2, President Trump announced his new tariff policy. The stock market will not like Trump’s plan as it will lead to a substantial increase in inflation. Your brokerage accounts and IRAs will take a big hit.
Increased U.S. tariffs will lead to higher prices for many of the things that most of us must have or want.
Why? The importers of the products from other countries will pay the tariffs to the U.S. government.
They will need to raise the prices of the wholesale goods to avoid losses or substantially reduced profit margins. The retailers will raise their prices for the same reason. In many cases, consumers must purchase those products as they are the only items that meet their needs.
Low- and middle-income families will lose more due to these increased prices and stock market losses than they will gain in savings from the Trump tax cuts. Keep in mind that the money going into the U.S.
treasury from the tariffs will, at best, cover half of the cost of the tax cuts. Don’t listen to what you are hearing from the Republican-controlled Congress. In order to pay for the tax cuts, which primarily help the very wealthy families, they will only have two options: make cuts to Social Security, Medicaid or Medicare, or significantly add to the deficit.
I don’t like either one of those options. If you don’t agree with how our government is being run, you can take action by writing letters to your representatives to Congress, as well as to your state representatives. And in 2026, you can vote for change.
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