Trump Tariffs: Here Are 4 Smart Things to Do With Your Money Right Now
KEY POINTS
- New tariffs could drive up prices on everyday goods, making it essential to prepare your finances now.
- Strengthening your emergency fund and paying off debt can help you stay ahead of rising costs.
- Investing wisely and locking in big purchases before prices rise can protect your long-term financial health.
New tariffs are coming, and they could have a big impact on your wallet. President Donald Trump has announced a baseline 10% tariff on all imports, with even higher rates on the E.U., China, India, and other countries. That means prices on everything from electronics to groceries could climb fast.
No one knows exactly how this will shake out, but one thing is certain: Now is the time to get your finances in order. If tariffs lead to rising costs, a little planning today could save you a lot of stress down the road.
Here are four smart moves to protect your finances and stay ahead of potential price hikes.
1. Beef up your emergency fund
A tariff-induced inflation spike would mean higher costs for essentials. If you're already feeling stretched, now is the time to bulk up your emergency fund. Most experts recommend having three to six months' worth of expenses saved, but if tariffs drive up costs, having extra savings could be a lifesaver. Start earning up to 10 times the national average savings rate -- open a CIT Platinum Savings account now.
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| Product | APY | Min. to Earn | |
American Express® High Yield Savings
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APY
3.70%
Rate info
3.70% annual percentage yield as of April 6, 2025. Terms apply.
Min. to earn
$0
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On American Express's Secure Website. |
3.70%
Rate info
3.70% annual percentage yield as of April 6, 2025. Terms apply.
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$0
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CIT Platinum Savings
Member FDIC.
APY
4.10% APY for balances of $5,000 or more
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4.10% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn
$100 to open account, $5,000+ for max APY
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On CIT's Secure Website. |
4.10% APY for balances of $5,000 or more
Rate info
4.10% APY for balances of $5,000 or more; otherwise, 0.25% APY
|
$100 to open account, $5,000+ for max APY
|
Open Account for CIT Platinum Savings
On CIT's Secure Website. |
Capital One 360 Performance Savings
Member FDIC.
APY
3.70%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Feb. 6, 2025. Rates are subject to change at any time before or after account opening.
Min. to earn
$0
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On Capital One's Secure Website. |
3.70%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Feb. 6, 2025. Rates are subject to change at any time before or after account opening.
|
$0
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On Capital One's Secure Website. |
2. Pay off high-interest debt
If tariffs push prices higher, the Federal Reserve might respond by raising interest rates again. That means credit card debt, personal loans, and other variable-rate debt could get even more expensive.
Now's the time to knock out high-interest debt. Consider a balance transfer credit card or a personal loan with a lower fixed rate to consolidate what you owe. The less debt you carry, the better.
3. Invest wisely
Trade wars and tariffs can shake up the stock market.
Instead of making drastic moves, consider diversifying your investments. Index funds and ETFs that track the broad market can help you weather volatility. And if you want to lock in a guaranteed return, don't forget about certificates of deposit (CDs).
CDs offer a guaranteed return, but in exchange you can't access your savings until your term is up -- typically somewhere between a few months and five years. The best CDs currently offer rates above 4.00%, and they'll get even more attractive if tariffs cause rates to go up.
4. Lock in big purchases now
If you've been considering a major purchase -- like a new car, home appliances, or even home renovations -- think about making it sooner rather than later. Tariffs could drive up costs on imported materials, making big-ticket items more expensive.
Of course, don't rush into a purchase just for the sake of it. But if you were already planning to buy, locking in today's prices might save you money in the long run.
Don't panic
Tariffs or not, smart money habits never go out of style. Strengthening your emergency fund, tackling debt, making wise investments, and pulling the trigger on big purchases before prices rise can help you navigate any economic uncertainty ahead.
If you're looking for a high-yield savings account, a low-interest balance transfer card, or investment guidance, now's the time to explore your options. Small steps today can help you stay financially strong no matter what the future holds.
Our Research Expert
Jake is a full-time Editorial Strategist for Motley Fool Money. He specializes in product ratings and all things credit cards, and wants to make sure each person has the best card for them.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page. APYs are subject to change at any time without notice.