Americans fear the worst as President Trump continues to add and adjust historic tariffs. march A clever real estate investigation It turns out that 72% believe tariffs will have a negative impact on the US economy. More people, 82%, believe that additional taxes on foreign goods will increase prices. Experts say it’s probably right.
“This could reduce consumer demand because we see people tighten their spending habits,” he said. Off-Fight. “And certain budget cuts can lead to unemployment, which means there are fewer disposable incomes for some. When these people start to tighten their wallets, companies feel it’s even more of a hit.”
While consumers really didn’t feel the pinch of Trump’s first term tariffs, this new set is poised to provide sharp economic stimulation, even if there is uncertainty about the ultimate level and applicability. People are already cutting their spending to prepare, but eating out may not be enough to navigate what’s coming. April 7th, Goldman Sachs Economist The US economy gave the chance to face a recession 45% the following year.
How Americans feel about tariffs
A Clever survey found that 81% of Americans are concerned about tariffs or potential world trade wars. Almost 70% of respondents were more concerned about the tariffs or potential global trade wars in March, when the survey took place six months ago.
Women are more likely to be 12% more concerned than men because they frequently manage their household finances. Men support tariffs more than women. Overall, 55% of those surveyed support tariffs on Chinese products. Tariffs on Mexican items, only 34% of Canadian goods support only 42%.
George Carrillo, CEO of Hispanic Construction Council (HCC) and former director of Oregon’s former health determinants, said daily price increases for essential items like groceries and gas directly affect women and promotes anxiety. Women already have lower wages and less retirement savings than men. Many women also work in the retail and services industries, particularly sensitive to increased tariff-driven costs and reduced consumer spending.
“Reducing employment and economic instability in these areas will make their concerns even worse,” Carrillo said.
Tariffs come along with deep spending cuts on federal programs and agencies. This combination protects consumer confidence as people think prices are skyrocketing and are almost at ease.
National Association of Housing Builders (NAHB) The proposed tariffs in China, Canada and Mexico estimate that the costs of imported construction materials could be increased by more than $3 billion or about $9,200 per new home. However, the Federal Housing Administration’s (FHA) proposed cuts could be threatening Support Program This makes the home more affordable for first-time buyers.
How the economic impact of tariffs has changed over time
Tariffs certainly aren’t new to US economic policy. The Customs Act of 1789 was the government’s main source of income, imposing a 5% tax on most imports. The infamous Smoot Holy Customs Act of 1930 saw the country’s already high tariff increase by 20%, significantly worsening the Great Repression.
“The latter… reduced global trade, worsened the economy, and increased unemployment,” Carrillo said. “It serves as a story of attention to the potential consequences of protectionist policies.”
Tariffs were once used to protect trade and primarily affected agriculture and manufacturing. But in today’s global economy, President Trump’s plan to impose tariffs in all countries is threatening to disrupt international supply chains and affect businesses in all industries. Consumers pay for the difference.
“History suggests that widespread tariffs rarely achieve their intended goals without significant economic fallout,” Carrillo said.
Austin Roof, Founder Zanda’s wealthSMEs, particularly real estate and construction companies, are already seeing higher material costs, he said. Some experts predict a Increased by 22% Cost of housing construction materials. Computer parts, video games and toys are expected to be 30% more expensive, but the increase in clothing could be 28-37%.
“The additional costs will drip,” Rules said. “The broader consumer base (real estate investors and small businesses) could experience losses.”
The winners and losers of the proposed tariffs
If there are beneficiaries of a tariff plan, it is the US government. Tax Foundation The measure estimates it will generate nearly $2.9 trillion in revenue over the next decade and will not take into account foreign retaliatory tariffs. Additionally, Rulfs said industries such as steel, agriculture and technology can now see a boom in the near future.
However, the financial burden of tariffs is passed on to the consumer. Although income after tax could drop by about 1.9%, households can see an average tax increase of over $1,900 this year.
“The losers are clear and widespread,” Carrillo said. “Consumers are facing an increase in the costs of imports, but small businesses relying on affordable materials have struggled to maintain their margins.”
Exporters also suffer because they are dependent on global markets. Companies may avoid hiring workers or expanding their operations, and may slow economic growth even further. From there, it’s the domino effect. The household finances will collapse and the economy will become unstable.
Marcus Sturdivant Sr., advisor, managing member and chief compliance officer ABC Squared2He also said tariffs are destroying people’s savings and retirement accounts. After the tariffs were announced, the S&P 500 fell sharply and lost $6 trillion in two daysa decline that reduced the value of the retirement fund for many older Americans by tens of thousands of dollars.
“The market hates uncertainty and this first quarter of administration is not a lack of uncertainty,” Stahdivant said. “A mixed or confusing message has plummeted consumer sentiment. Consumers are the biggest losers in the near future.”
What people can do to relieve pain
The administration’s tariff policies can change at any time, but it’s wise to take steps to protect your finances. This includes monthly budget prioritization, spending cuts, and stockpiling essentials.
Almost 60% of Americans have already reduced essential spending, and around 32% have rethinked large-scale financial decisions. For example, 22% have delayed buying a home, while 13% have delayed sales. Currently about 8% are trying Sell their homes quickly If mortgage fees rise and scare potential buyers.
While it may be tempting to reconsider your retirement or saves portfolio, experts recommend that you settle and stick to your plans. Increase your savings and emergency funds and delay the distribution of retirements if possible. Also, don’t try to predict where the market is heading.
“History shows stocks are bounced,” Stardivant said. “As the old saying goes, time in the market is greater than the market timing.”
