How consumers can survive the Trump tariff turmoil without panicking
Don’t panic.
Sure, thanks to the historic tariffs President Donald Trump imposed from the White House Wednesday, things sure look bleak for consumers — Thursday’s stock market plunge was the worst in nearly five years. Prices are likely to climb. Interest rates are likely to remain up.
There are ways to cope, say the experts. And panicking isn’t one of them.
Consumers should stick to their financial plan, advised Matt Schulz, chief consumer financial analyst at LendingTree, which tracks interest rates.
“Regardless of whether tariffs are implemented, your goals are still your goals,” he said.
“You still need to invest in your retirement. You still may need to save money to buy a home, pay for your kid’s college education or pay for a wedding,” Schulz said.
Trump Wednesday said he’ll impose a 10% tariff on goods from other countries. The levy will be higher on 60 nations he called the “worst offenders,” including the European Union, China, South Korea and Vietnam.
Administration officials Thursday continued to insist that any short-term economic pain will be reversed.
There “will be a short time of uncertainty, and then we’ll move back to the prosperity that this president has envisioned,” U.S. Department of Agriculture Secretary Brooke Rollins told reporters.
Economists warned that though the tariffs could have a big impact on the economy, consumers should stay calm.
“I don’t think we should take what happened yesterday lightly,” said Clement Bohr, economist at the UCLA Anderson Forecast. “It could be devastating to the economy.”
But there’s a lot of uncertainty about what’s to come. Will Trump relent? Will other countries retaliate? And if so, how much?
“It’s hard to make projections about what to do right now,” said Bohr, who is not a personal finance expert. “The best thing to do is hold your money, wait it out and not overreact,” even though that patience could cool demand and cool economic growth.
If the tariffs remain in effect, consumers will come to feel the impact. The Tax Foundation, a center-right research group, estimated Thursday that the tariffs would cut after-tax income by an average of 2.1%, which meant roughly an average tax increase this year of $2,100 per household.
Some economists see a still-decent economy that could weather much of this storm. Sung Won Sohn, president of SS Economics in Los Angeles, predicted “a modest drag on economic growth and a slight uptick in inflation over the next 12 months.”
Schulz, the consumer financial analyst, advised these strategies for coping with the changes:
Pay off high interest debt
“Money you have to put toward paying down credit card debt or other high-interest debt is money that can’t go toward putting food on the table, building an emergency fund or reaching other financial goals,” Schulz said.
“It’s also money that can’t be used to offset rising prices.”
He advised using a 0% balance transfer credit card or low-interest personal loan to consolidate debt.
Build an emergency fund
Once the debt is nearly repaid, put money into savings so that you can avoid similar debt in the future.
Don’t be shy about seeking help
There is an army of financial advisers and organizations willing to help people with their budgets and savings plans.
Or, said Schulz, an “accredited nonprofit credit counselor might be just the thing. Others may lean on religious groups or organizations geared toward helping people through tough times.”
If you need a car, buy it soon
“The consensus seems to be that car prices are going to rise because of tariffs, so acting quickly makes sense if you’re in the market for a car or feel like you might be in the near future,” Schulz said.
But he cautioned about acting foolishly. “It still makes sense to shop around and get preapproved for the best interest rate. It still makes sense to research which cars are the most reliable,” he said.
Overall, Schulz had this advice: “People definitely shouldn’t panic. Panic leads to bad choices in all aspects of life, and money is definitely no exception.”
This story was originally published April 3, 2025 at 1:51 PM with the headline "How consumers can survive the Trump tariff turmoil without panicking."
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