Trump Says ‘Don’t Be a PANICAN’ — 3 Reasons You Should (and Shouldn’t) Panic About the Economy
Written by
Kerra Bolton
Edited by
Levi Leidy
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President Donald Trump recently defended his strong stance on tariffs, telling Americans not to “be a PANICAN.” He argued that tariffs are a strategic tool to protect American manufacturing, bring back jobs and reduce reliance on foreign countries, especially China.
However, the broader economic picture is more complicated. While tariffs may be one part of the larger plan, experts are divided on whether the overall economy is on solid ground or showing signs of stress.
Here are three reasons you should — and three reasons you shouldn’t — panic about the economy.
What Trump Said
On Truth Social, the president’s social media app, he defended his tariff policy and responded to critics who said it would cause severe economic damage.
According to The Hill, President Trump posted, “The United States has a chance to do something that should have been done DECADES AGO. Don’t be Weak! Don’t be Stupid! Don’t be a PANICAN (a new party based on Weak and Stupid People). Be Strong, Courageous, and Patient, and GREATNEWSS will be the result!”
3 Reasons To Panic
1. Tariffs Raise Consumer Prices
Economists have warned that tariffs function like a sales tax, driving up costs for imported goods.
“Tariffs ultimately are a tax on consumers,” said Davide Accomazzo, an investment and economic analysis expert and finance instructor at the Pepperdine Graziadio Business School. “When a country imposes tariffs on imported goods, most of them are passed on to the final consumer.”
2. Consumer Spending May Have Peaked Early
Wayne Winegarden, an economist at Pacific Research Institute, said that the increase in March retail sales was likely indicative of consumers shifting the timing of their purchases before tariffs increase prices.
“This means the economy is primed for a payback in the coming months,” Winegarden said. “Purchases that would have occurred later in the year have occurred in March. Therefore, future retail sales are likely to be weaker.”
3. Housing Is Getting Hit From Both Sides
Mortgage rates are climbing again, which tends to slow housing activity and broader consumer spending.
“The number of single-family homes that began construction declined in March by 14.2%,” Winegarden said. “The National Association of Home Builders survey found housing suppliers had increased prices by more than 6%, or roughly $11,000 per new home ‘due to tariffs.'”
3 Reasons Not To Panic
1. The Nation’s Economic Fundamentals Remain Strong
Some economic experts said that despite the headlines, the underlying economy is showing resilience.
“It’s a mixed bag right now and that’s throwing a lot of people off,” said Joe Camberato, CEO of NationalBusinessCapital.com, a fintech marketplace that helps entrepreneurs access financing.
Camberato explained, “It’s easy to get rattled, but when you zoom out, there are still strong fundamentals: unemployment is low, jobs are solid, consumer spending is holding up and inflation has cooled down big time. That’s not the kind of environment you usually see heading into a recession.”
2. Inflation Is Under Control for Now
While interest rates remain high and tariffs introduce uncertainty, not all of the data supports worst-case economic fears.
“A lot of people are still talking like inflation’s running wild and it’s not,” Camberato said. “We’re close to 2%, which is where the Fed wants it. Interest rates feel painful, especially for borrowers. But they’ve also brought inflation down, and now they’re benefiting savers and investors.”
Camberato continued, “Tariffs are the wildcard. Yes, they matter, but we haven’t seen the full impact yet. So, let’s not jump to worst-case scenarios.”
3. Short-Term Pain for Long-Term Gain
Some financial experts said today’s economic challenges are part of a necessary reset.
“In the long run, America’s shift to make money through tariffs rather than through income taxes could revolutionize people’s financial situation,” said Melanie Musson, a finance expert with InsuranceProviders.com. “But in the in-between time, there’s certainly reason to be cautious with your money and prepare for tightening finances.”
Musson explained, “Panic is not the answer to concern. Saving, not overspending, and caution are good responses. Panic is not.”
More From GOBankingRates
Sources
- The Hill, “Trump pushes back on tariff criticism: ‘Don’t be a PANICAN.'”
- Davide Accomazzo, Pepperdine Graziadio Business School
- Wayne Winegarden, Pacific Research Institute
- National Association of Home Builders, “Builder Confidence Levels Indicate Slow Start for Spring Housing Season.”
- Joe Camberato, NationalBusinessCapital.com
- Melanie Musson, InsuranceProviders.com
