What a second Trump administration means for your money | Real Time Headlines

During the campaign, the president Donald Trump He promised lower taxes, lower prices and a stronger economy during his second term.

Trump signed on day one of second term series of executive orders — includes a regulatory freeze Pending government review and issuing instructions to members of their government Assess trade relationships working with Canada, China and Mexico — to try to advance some of his goals. But delivering on these and other promises will require additional steps and, in many cases, congressional support.

Here are five ways a second Trump administration could affect your finances.

The White House did not immediately respond to CNBC’s request for comment.

A wildcard is tariff. There are many opinions on how Trump will use tariffs and tariffs. The impact these tariffs will have About the price. Duties are paid by the business purchasing the goods, and part of the cost is usually delivered to consumers.

During his campaign, Trump promised to impose sweeping 10% tariffs on all imported goods, 25% tariffs on all goods from Mexico and Canada, and up to 60% tariffs on products from China. Trump’s first-day order to review the trade relationship set an April 30 deadline for those reviews.

“We view Trump’s decision not to announce new tariffs on his first day in office as evidence of internal debate over how best to implement them, rather than a sign of plans to significantly scale back or withdraw from his campaign promises to impose new tariffs on the United States.

During his confirmation hearing last week, Trump’s nominee for Treasury Secretary Scott Bessent told lawmakers to think about tariffs in three ways: as a remedy for unfair trade practices, a revenue increaser and a negotiating tool. He pushed back against claims by Democrats, saying the tariffs would mean higher prices for consumers.

“China is trying to escape its current economic difficulties through exports, so it will continue to cut prices to maintain market share,” Bessent said.

Trillions of dollars in tax relief will be eliminated unless Congress acts. Scheduled to expire year-end, including lower tax brackets. More than 60% of taxpayers can see Higher taxes in 2026 According to the Tax Foundation, there is no extension of provisions in the Tax Cuts and Jobs Act (TCJA).

Extending these rules is a significant move amid concerns about ballooning federal debt. according to Congressional Budget OfficeThe federal budget deficit is expected to increase to $1.9 trillion this year, adding to the $36.2 trillion in outstanding debt.

TCJA provisions are expected to cost $4 trillion over the next 10 years, according to TCJA Penn Wharton School’s Budget Model. Trump also promised to eliminate tips and the Social Security tax, which would double prices. That leaves plenty of room for negotiation as lawmakers debate spending and taxes this year.

“Fiscal stress is going to be even more important in the debate than it was the first time around,” Erica York, senior economist and director of research at the Tax Foundation, said at CNBC’s Financial Advisor Summit in December.

Experts predict one of the key battles will be over State and local tax reliefalso known as salt. Under current law, these deductions are capped at $10,000. High-tax states such as California, New York and New Jersey all have top tax rates in excess of 10%, so reforms in these states are significant for many taxpayers who itemize deductions. Setting this cap would save the federal budget approximately $100 billion per year, helping to offset other cuts.

maximum child tax credit Under the TCJA, the fee also doubled, from $1,000 to $2,000. On the campaign trail, Vice President J.D. Vance said he hoped increase credit to $5,000. Trump said he supported the credit but did not specify the amount. Both are costly from a budget perspective.

In order to fulfill Trump’s campaign promise to protect Social Security and Medicare, cutting other health care programs became a way to fund the tax proposal. House Republicans have identified $2.3 trillion in cuts to Medicaid, according to a report Documents published by Politico.

Subsidy to Lower health insurance costs Health care services under the Affordable Care Act are also at risk. If Congress doesn’t extend it, the subsidies will expire at the end of 2025. With limited policy changes during the budget reconciliation process, some analysts expect these subsidies to run out.

“This is unfortunate because there are multiple compromises that could be made to better target subsidies in exchange for expanding them and stabilizing the market,” said Kim Monk, a partner at Capital Alpha Partners.

If Trump follows through on his promise, people with credit card balances could benefit Proposal to temporarily cap credit card interest rates at 10%. Vermont Sen. Bernie Sanders said Thursday he was drafting legislation to do just that. The problem: If enacted, it could also make it harder for people to get credit, experts say.

Although analysts said a cap was unlikely, the focus on the issue led to its inclusion on the watch list.

“This means that even without a strict interest rate cap, Trump may intervene in credit card policy,” said Jaret Seiberg, financial policy analyst at TD Cowen.