How to Safeguard Your Finances in a Trump 2.0 Economy

In the next five years, women are poised to control an unprecedented amount of wealth and financial power in America. Although it doesn’t seem that way given the male billionaires currently controlling the media and political landscape, numbers don’t lie. By 2030, women, who outlive men by an average of five years or more, are expected to control a majority of the $30 trillion financial assets currently held by Baby Boomers.

Additionally, women also wield significant power as consumers, presiding over as much as 75% of discretionary spending globally. And if the previous election has taught us anything, it’s that in a corporatocracy like America, money equals political power. 

However, despite boasting a steady economy that is the envy of the world, there is real and growing anxiety over Trump’s unpopular tariffs, the looming loss of healthcare, and the terror of mass deportations. This monthly column will focus on how we can protect our  money and use financial power to weather whatever storm this new administration might bring.

This month, we’ll kick off with a dive into the potential economic impact of Trump’s proposed policies, answering such questions as: What do the experts see in the financial tea leaves for 2025? Are the doom-and-gloom predictions about Trump tanking the economy and driving up inflation overblown? And, perhaps, most important of all: What are financial gurus advising we do to blunt the worst effects of Republicans putting modern robber barons like Donald Trump and Elon Musk in the driver’s seats of our nation’s economic engine?

A Snapshot of America’s Current Economy 

Despite polling indicating voters elected Trump based on economic concerns, every financial indicator refutes this narrative. To say that the Biden administration took a faltering economy post-pandemic and set it on its feet again would not be an exaggeration. By most measures, America’s recovery has been a financial success story of not just a strong economy, but a resilient one.

Inflation, once the scourge of American life according to mainstream media, has fallen from its 2022 high of 9.1% to 2.4% as wages continue to rise. The unemployment rate has fallen two points since 2021, reaching historic lows as the post-pandemic boom continues to fuel a strong job market.

While housing affordability is still a rough spot, it’s undeniable that Biden’s administration returned the U.S. to economic stability and began the long deferred work of rebuilding the middle class.

How Trump’s Most Consequential Policy Proposals Will Affect the Economy

What does Trump plan to do with the remarkable, thriving economy he has inherited? Plunder it for profit, of course. Just kidding. Sort of. Certainly tanking the economy is very on brand for Republicans, whose modern presidents have turned in a weaker economic performance than every Democratic president since 1949. 

A truly terrifying list of budget cuts has been circulating online courtesy of House Budget Chairman and Texas Republican Jodey Arrington. It includes some pretty pie-in-the-sky proposals like slashing welfare and Medicaid that are unlikely to pass the razor-slim GOP majority in Congress this year. 

However, even given our extremely low expectations for the GOP, there are an awful lot of poison pills even in the more modest policy proposals intent on enriching corporations at the expense of American consumers.

Tariffs

If you can’t tell by how often he talks about them, Trump is really in love with universal tariffs. Especially when he can use them as threats or tools of political extortion, as he did just days ago to secure Colombia’s acquiescence to accepting military deportation flights. Colombia’s president Gustavo Petro had previously objected to the inhuman treatment of deportees, who reportedly were brought on military planes shackled in hand and foot cuffs and denied water and basic necessities.

Now that he’s supposedly strong-armed other countries into submission, Trump is likely to lean even further into tariffs as threats, like a diplomatic version of a mob shakedown. He’s promised tariffs anywhere from 10 to 25% on imports into the United States from China, Canada, and Mexico. While it’s the company doing the importing that pays tariffs, that cost gets passed along to consumers.

Recently, Trump aides have suggested enacting limited tariffs on critical imports only, a suggestion Trump has publicly rebuffed. If implemented, Trump’s tariffs would drive up the cost for both domestic and imported fresh food, furniture, toys, clothing, electronics, and cars.

Rita-Soledad Fernández Paulino, founder of Wealth Para Todos, a money and self-care coaching company dedicated to empowering Black women, women of color, and LGBTQ+ individuals to achieve financial independence, says if you can’t afford to buffer your budget a bit to absorb the sticker shock, you should consider alternatives.

“For example, when it comes to large purchases over $1,000,” says Paulino. “Consider whether to buy new or explore secondhand options from platforms like Facebook Marketplace or secondhand stores. Reflecting on your budget and identifying your maximum willingness to pay for these items can help you prepare financially.”

Tax Cuts

The 2017 tax cuts Trump put in place during his last presidency aren’t set to expire until 2025, but a Republican-controlled Congress has hinted at lowering the current corporate tax rate from 21% to 15%.

While the GOP always dusts off trickle-down economic arguments to justify these cuts, historic and recent evidence shows cutting corporate tax rates benefits executives and business owners without boosting wages.

Trump has promised to lower tax rates for all Americans, but it’s unclear exactly what that will look like and it certainly won’t happen this year. If you do have a bigger tax return this year or next year, consider paying down debt, diversifying your retirement income, and building up that emergency fund.

Social Security

Trump’s promise to end the taxation of Social Security benefits and not to raise the retirement age is like Snow White’s apple. It’s shiny and sweet but there’s a hidden agenda. Economists have estimated ending the taxation of benefits would accelerate the bankruptcy of Social Security significantly. 

The Committee for a Responsible Federal Budget had estimated the Social Security trust would be insolvent by 2034. Trump’s proposal accelerates that timeline by three years, leading to benefits being slashed by 33% for about half of beneficiaries as soon as 2031.

Scary, right? Don’t panic, though. Paulino says to keep your retirement strategy steady and consistent. “It’s important to stay calm and focus on maintaining a diversified portfolio that aligns with your long-term financial goals and risk tolerance,” she advises. “Avoid impulsive changes based on political shifts.”

That means reducing volatility in your investments as you near retirement age and making sure you have shifted some of your savings to accounts that are easily accessible. “If I was close to retirement, I would try to save at least two years of expenses in a high-yield savings account,” adds Paulino.

Industry Deregulation

Both in terms of Trump’s campaign promises and the track record of his previous presidency, many captains of industry are gleefully anticipating widespread deregulation in the energy, banking, and technology sectors. It’s expected Trump will pause or reverse most of Biden’s regulatory actions via executive order. And with the attempted firing of inspector generals, Trump is clearly signaling he has no intention of following democratic norms in holding agencies accountable for following the rule of law. 

Reversing some executive actions, such as prohibiting off-shore drilling, might not be so easy and will require the support of Congress. And while Trump has promised to give Elon Musk carte blanche on cutting government waste through the Department of Government Efficiency (DOGE) (absolutely not a government department by the way), it’s likely that, given Trump’s main character syndrome, the billionaire will stay firmly in an advisory role. (Elon has already pushed out Vivek Ramaswamy.)

Deregulation is usually a boon for corporate villains and their shareholders but not so great for the rest of us. Under Trump’s previous presidency, deregulation had a chilling effect on workers rights and undermined crucial environmental protections. 

Jannese Torres, host of the “Yo Quiero Dinero” podcast and author of Financially Lit!, says there could be a silver lining for Americans invested in the stock market.

“My prediction is that because Wall Street tends to favor deregulation that benefits corporations, stocks could potentially perform well under a Trump presidency,” Torres says. “As long as his tariff plan doesn’t heavily impact company profits or cause an economic recession due to consumers pulling back on spending.”

Housing

For a country struggling with affordable housing, voting for Donald Trump demonstrates a serious lack of self-awareness. The housing market is currently plagued by high mortgage rates, inflated home prices, dwindling inventory, and a forecast of much of the same for the foreseeable future. Trump has not presented even a concept of an affordable housing plan.

A spokesperson for the Trump-Vance transition team promised to lower the cost of housing through mass deportations and deregulation, but this is unlikely to be effective. In fact, mass deportations would increase building costs due to labor shortages and most of the regulations limiting housing construction are local zoning laws.

If you’re trying to buy a home in 2025, cultivate your credit score to get the best possible rate. Also consider getting a mortgage from local lenders and credit unions who can help you avoid hidden costs and keep your money invested in the community.

Healthcare

The Affordable Care Act faces a precarious situation in 2025 because the subsidies that help Americans afford health insurance are set to expire. Trump and a Republican-controlled Congress don’t intend to extend these subsidies, which will dramatically raise the cost of insurance for millions of Americans.

The Congressional Budget Office estimates 4 million Americans will lose health insurance coverage because they will no longer be able to afford the cost of premiums. Even more alarming, Trump has rolled back several executive actions aimed at curbing prescription drug costs and ensuring access to affordable healthcare insurance.

Paulino says if one of your biggest concerns with the incoming administration is access to healthcare and healthcare rights either for yourself or your family, it’s probably time to get your documents in order and start saving.

“For example, individuals in same-sex marriages may need to ensure legal documents, like wills, are in place to protect their rights,” she warns. “It’s also a good idea to create or strengthen emergency funds to support family and friends who might face financial or systemic challenges under the administration due to limited access to health care.”

Deportations

Many economists expect Trump to temper his immigration strategy because deporting up to 11 million migrants would be a logistical and financial nightmare. Even if Trump pursues something more modest, it would still upend farming and agriculture where immigrants are a majority of the workforce. 

Immigration and Customs Enforcement (ICE) has reportedly swept up 956 migrants nationwide in the past week, resulting in widespread panic among communities. The California Farm Board said absenteeism from workers who fear deportation is already affecting the citrus harvest.

The “eggs are too expensive” crowd are going to feel duped because these deportations will inflate both the availability and the cost of groceries, specifically milk, eggs, meat, and fresh produce. Compounded by tariffs, the price tag for this cruelty and bigotry will get passed onto consumers and ultimately, American families who will struggle to keep food on the table.

Plan now for how you might offset grocery costs by breaking ground on that vegetable garden you’ve been putting off, joining a community garden, or adjusting your dining-out budget. And consider how to help others in your community who might also struggle to afford food this year.

The Bottom Line

Many of Trump’s worst policy proposals won’t have a resounding, immediate financial impact on the average American, especially if his outrageous proposals for tariffs and mass deportations are reined in by his administration or Congress. But, as Trump demonstrated over this past weekend in his dust-up with Colombia, his bullying and tantrums will inevitably introduce chaos into an already volatile supply chain.

Moody’s chief economist predicted a slowly growing economy in 2025 instead of an outright fiscal disaster but I can’t say I’m as optimistic. A growing economy does little to address the suffering and financial uncertainty many American families will face as loved ones are deported, healthcare is suddenly out of reach, and they struggle to pay skyrocketing food costs.

In our family, we’re tightening our budget, saving like our lives depend on it, developing retirement contingency plans, and making sure we’re banking, shopping, and investing in our local community as much as possible. As a woman, managing my personal finances so they support my values is a top priority in 2025. I hope you’ll join me.