The Trump administration’s newly proposed tariffs on crude oil, steel, computer chips, semiconductors, and pharmaceuticals are expected to drive up consumer costs, fuel inflation concerns, and destabilize key industries. As prices rise, consumer sentiment is already declining, unemployment is increasing, and American households—still recovering from the financial strain of the pandemic—are feeling the impact.
Samuel Molina, AFC®, CEO and founder of The Academy of Financial Education, issued the following statement:
“The United States of America is not a business—we are a country that must generate revenue and control spending while maintaining essential federal programs. These policies may reduce the spending power of American families at a time when financial stability is crucial. Americans can ill-afford continued rising prices; the President and Congress should be focusing on policies that help Americans keep money in their pockets, encourage job growth, entrepreneurship, education, and vocational training.
Economic analysts warn that the potential effects of these tariffs could significantly impact both household budgets and broader market stability. Molina emphasized the long-term risks:
“The potential effects of new tariffs and increased costs threaten to undermine recent financial progress. These added financial pressures could erase that progress, making it even harder for families to get ahead.”
According to Mike Skordeles, Head of U.S. Economics at Truist, a 10% tariff on crude oil could lead to a 16-cent increase per gallon of gas, which, as stated in a recent USA Today article, would ultimately raise costs across industries that depend on fuel for transportation.
The Academy of Financial Education remains committed to helping Americans navigate these economic challenges through financial education, advocacy, and resources that promote economic resilience. Molina emphasized the importance of preparation and informed decision-making:
“Through workshops, financial planning tools, and community engagement, we aim to equip individuals with the knowledge they need to safeguard their financial well-being in uncertain economic times.”
We urge policymakers to consider the long-term economic impact of these tariffs and to support policies that foster financial stability, job growth, and economic opportunity for all Americans.