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As President Donald Trump continues to negotiate the rate of tariffs that countries will ultimately pay to do business with the U.S., Americans are already feeling the pinch of higher prices — and many worry about their ability to pay down debt.
About 78% of survey respondents say Trump’s tariffs, or taxes on imported goods, will make it harder to manage or repay debt, according to a recent report by Zety, a resume templates site. The survey polled 1,005 U.S. employees on April 12.
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Trump’s trade policy has included threatening sharply higher tariffs, and then changing his stance soon after, as a negotiating tactic with other nations.
“Tariffs are clearly one of his favorite tools in the toolbox,” said Mark Hamrick, senior economic analyst at Bankrate.
prices on many everyday goods go up. According to a mid-June report by the Budget Lab at Yale University, tariffs could cost an average $2,000 per household in 2025. The analysis is based on tariffs in place as of June 16.
Tariffs have also influenced the interest rates consumers pay on their debt. Levies have added to uncertainty in the economy, leaving the Federal Reserve reluctant to lower its benchmark rate.
Federal Reserve Chair Jerome Powell said during a panel on Tuesday that the central bank would have cut rates this year if not for the president’s tariff plan.
The Fed has held interest rates steady at 4.25%-4.5% since December.
While that federal funds rate sets what banks charge each other for overnight lending, it also directly impacts borrowing and savings rates for Americans. In fact, the bank’s inaction on rates has kept credit card rates near record highs.
It’s important to create a strong “financial foundation” as uncertainty in the economy lingers, according to Matt Schulz, the chief credit analyst at LendingTree.
“Put yourself in the best possible situation by building your emergency savings and knocking down that high-interest debt,” Schulz said.
Here are three ways to get a handle on your debt despite economic headwinds, according to experts.
