Financial news has certainly started firing more rapidly since President Donald Trump took office in January. From tariffs and trade wars to tax bills and stock market crashes and surges, it’s been a wild six months.
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Here’s an early snapshot of how the Trump administration’s policies have impacted Americans’ wallets in their first six or so months.
Also see three ways a Trump-Powell faceoff could affect your wallet this summer.
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Rushed Consumer Shopping Sprees
In the initial few months of tariff threats, Americans rushed to buy goods before they rose in price.
“The whipsaw tariff announcements left many Americans feeling the need to stockpile and rush purchases that they may or may not need down the line,” said Aaron Razon, a consumer finance expert with Couponsnake. “In their anxiety and uncertainty, many consumers rushed into making purchases.”
Indeed, TransUnion reported that consumer credit card balances rose to $1.07 trillion in the first quarter (the most recent available data), up from $769 billion in 2022.
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Sustained Inflation Uncertainty
It remains unclear just how much the Trump administration’s tariffs will drive up inflation. While it remained muted in the early months of the year, the Bureau of Labor Statistics reported a jump in inflation last month.
Economics professor Brandon Parsons, Ph.D., of Pepperdine University explained that the impact of tariffs is just now starting to hit retail shelves. “Importer inventory stockpiles and tariff agreement delays have kept the numbers quiet. But apparel prices jumped 8% from the April 2 tariffs alone and are up 17% overall from all tariff actions this year. While motor vehicles were unaffected by the April tariffs, the cumulative 2025 actions have driven car prices up 8.4%, adding roughly $4,000 to the cost of a typical 2024 vehicle,” he said.
Higher Metal Prices
Tariffs specifically targeting steel, aluminum and copper could drive up the cost of everything from cars and consumer goods to new homes and house renovations.
“Higher costs for metal lead to less supply and higher prices,” Parsons said. He pointed to a report by the Washington Center for Equitable Growth, indicating a 2% to 4.5% increase in manufacturing costs. “That could decrease sales and lead to greater unemployment, as well as less disposable income for Americans buying these products.”
Businesses Cautious on Hiring and Expansion
It’s hard for businesses to make long-term plans when the regulatory environment changes so rapidly. That has left many businesses slowing down hiring and other long-term investments.
As CBS News reported, the July employment report showed disappointing numbers, “with the data suggesting the job market is wobbling from the uncertainty of on-again, off-again tariffs.”
Stock Market Frothiness
Retail investors don’t share businesses’ caution, however, and drove major U.S. stock indexes to record highs in late July.
Investment platform GuruFocus reported a price-to-earnings ratio of 28.79 as of August 1, compared with a median ratio of 17.97. It also reported that the Buffett Indicator shows total U.S. stock valuations at 208.3% of GDP, compared with more normal ratios in the 100% to 150% range.
And then there’s the resurgence of meme stock mania to show off the full frothiness of U.S. stocks.
Lower Taxes for Most Americans — for Now
The One Big Beautiful Bill Act lowered the effective tax rates for most Americans. The majority (56%) of economists surveyed in July by Wolters Kluwer see the new tax law as stimulative to the economy.
Yet many economists also worry about rising U.S. debt levels. The Bipartisan Policy Center calculated that the bill will cost the government $3.4 trillion over the next 10 years.
That could cause future administrations and lawmakers to push for higher taxes to contain soaring debt. For now, however, taxpayers can enjoy lower effective tax rates and some higher deductions and credits.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: 6-Month Check-In: 6 Ways Trump’s Presidency Has Impacted Our Wallets
