4 Red Flags for the Middle Class After Trump’s First 100 Days
Written by
Kerra Bolton
Edited by
Amber Barkley
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Middle-class Americans are already feeling the early tremors of economic change after the first 100 days of President Donald Trump’s second term.
From rising prices at the grocery store to the threat of shrinking job opportunities in key industries, warning signs are emerging that could squeeze household budgets and long-term financial stability.
Here are fourred flags for the middle class after Trump’s first 100 days.
Everyday Prices Increase
In the first 100 days of Trump’s return, price hikes are hitting middle-class households in subtle but significant ways. From groceries to gas, everyday essentials are climbing faster than wages and squeezing budgets already stretched thin.
“Tariffs are inflationary, so American consumers need to watch their expenses carefully, especially in the areas of consumer goods,” said Mayra Rodriguez Valladares, managing principal at MRV Associates. “We are a huge importer of Asian toys, for example, and those are rising in price.”
She also explained that, with inflation remaining elevated as an effect of the tariffs, interest rates on loans, credit cards and mortgages will also remain high.
In addition, Valladares said the “erratic nature of the president’s policies” worsens the problem.
“If individuals and businesses knew significantly in advance what the tariff policies are, they could plan for the future,” Valladares said. “Uncertainty and volatility make it very difficult for consumers or businesses to figure out how to budget for tariffs.”
Shrinking Job Markets
Industries like construction, agriculture and retail are vulnerable, because they rely heavily on imported materials and goods.
“You might see businesses cutting back, which could lead to fewer jobs or reduced hours in manufacturing, construction and retail,” said George Carrillo, CEO of the Hispanic Construction Council (HCC).
These slowdowns hit hardest in regions where local economies depend on vulnerable sectors and lead to fewer opportunities and greater financial insecurity.
“States in the Midwest and South that depend on manufacturing and farming are expected to bear the brunt of these economic policies,” Carrillo said. “The Pacific Northwest is also likely to struggle as major companies, like Nike, Adidas and Colombia Sportswear, headquartered in the region face rising costs and potential disruptions.”
Carrillo added, “It’s a tough spot for workers and businesses in these areas as they face rising costs and shrinking margins.”
Dining Out Costs More
Rising tariffs are quietly driving up the cost of dining out, making restaurant meals less affordable for middle-class families. As ingredient prices climb, many restaurants are passing those increases on to customers and turning even casual meals into budget concerns.
According to the food blog Eat This, Not That, here’s why middle-class diners could see price hikes on some of their favorite menu items.
- Guacamole and avocado-based dishes: 90% of avocados consumed in the U.S. come from Mexico.
- Salsa and tomato-based sauces: The U.S. relies on Mexico for tomatoes.
- Fresh salads: Imported produce from Mexico and Canada.
- Imported beer and alcohol: Many popular beers come from Mexico.
- Beef and meat-centric dishes: The U.S. imports a portion of its beef from Canada.
Supply Chain Shortages
Supply chain issues are worsening under Trump’s trade policies, causing periodic shortages of essential products.
Electronics, certain food items and auto parts are becoming harder to find, and these gaps in availability can raise prices even further. These disruptions not only frustrate consumers but also create instability for retailers and manufacturers already coping with higher costs.
Carrillo said the ripple effects of supply chain shortages can add stress to households and increase the likelihood that consumers will rely on credit cards to cover rising expenses.
“This can create long-term financial problems if interest starts piling up,” Carrillo said. “To manage these challenges, focus on sticking to a budget, look for savings through coupons and bulk purchases, and explore ways to bring in extra income or build new skills.”
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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Sources
- Bureau of Economic Analysis, Gross Domestic Product, 1st Quarter 2025 (Advanced Estimate)
- Mayra Rodriguez Valladares, MRV Associates
- George Carrillo, Hispanic Construction Council
- Eat This, Not That, “10 Menu Items Getting More Expensive as New Tariffs Start.”
