President Donald Trump has been in office for just about 50 days, and he’s already set the stage for major economic shifts. His administration has imposed tariffs on Mexico, Canada and China, and it has made attempts to downsize federal government agencies. According to Federal Register, Trump has signed 82 executive orders, and more changes are likely in store.
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To find out what all these changes mean for Americans, GOBankingRates asked Omar Qureshi, managing partner and investment strategist at Hightower Wealth Advisors St. Louis, for his opinion on how the current president’s first 100 days could affect your finances.
As reported by NPR, on March 4, 25% tariffs on Mexican, Canadian and Chinese goods took effect. However, in the following days, tariffs related to autos, as well as tariffs on some Mexican and Canadian goods, were paused until early April. There are some tariffs still in place, though, and according to NPR, most economists say these will lead to higher prices.
“Tariffs are likely to have the biggest impact if implemented,” Qureshi said. “Consumers will likely be subject to price increases on both food and goods, such as automobiles. However, Trump has flip-flopped on this topic, so the future is unclear.”
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In a recent address, Trump said that Congress should pass “tax cuts for everybody.” However, as PBS explained, it remains unclear what that would look like. One measure currently being discussed is Trump’s 2017 Tax Cuts and Jobs Act.
“The reality is the ‘tax cuts’ are merely a preventing of the expiration of the original Trump tax cuts at the end of this year,” Qureshi explained. “So, if the proposed extension passes, it’s likely that nothing changes. Trump, however, has signaled a desire to have no tax on Social Security income, overtime income and tip income. Households with those sources of income could see a break. Lastly, Trump has proposed a repeal of the state and local tax deduction limitation. This will largely impact higher income households who have more burdensome tax loads at the state and local level, and high property taxes.”
“I don’t believe any policy change will have any impact on interest rates,” Qureshi stated. “More likely, changes in prevailing rates such as the 10-year government bond rate, will have the highest impact. If the economy slows, or if inflation rates come down, you could wind up with lower interest rates.”
The federal funds rate currently stands at 4.25% to 4.5%, and as Forbes reported, the White House recently stated its desire to bring down interest rates.
As of March 7, the S&P 500 is down slightly for 2025 and the Nasdaq has fallen over 6% for the year. The stock market’s reaction to some of Trump’s actions has been less than favorable — and that could continue throughout Trump’s first 100 days in office.
“The market has reacted negatively to Trump in general, due to the chaotic nature of his communications,” Qureshi said. “Markets hate uncertainty. And uncertainty can lead to economic weakness. The probability of a recession has increased, though [it] isn’t my base case. Investors should be on the lookout for continued weakness in the markets and the economy. This could also lead to higher joblessness.”
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: How Could Trump’s First 100 Days Affect Your Finances?