What a Trump Presidency Could Mean for Frugal Shoppers in 2025
Written by
Chris Adam
Edited by
T. Woods
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The cost of everyday items for shoppers going into 2025 and beyond has been a key point of debate among Joe Biden and Donald Trump during this presidential election. Both candidates know that many voters want a strong economy and lower prices — but Biden and Trump have different talking points and plans for how to get this done.
One thing may be for certain: it’s going to be an uphill battle for whomever wins the election. While Trump promises lower taxes and a cooling off of inflation, some experts aren’t convinced he’s going to do much to help.
Tariffs and Prices
According to the Atlantic, “A growing number of economists and policy analysts are warning that Trump’s second-term agenda of sweeping tariffs, mass deportation of undocumented migrants, and enormous tax cuts would accelerate, rather than alleviate, inflation.”
Those proposed sweeping tariffs could be a very big deal for frugal shoppers. Those tariffs on imports could drastically raise costs for shoppers, according to the nonpartisan Peterson Institute for International Economics.
Tax Cuts
On the surface, tax cuts probably sound like a great idea for frugal shoppers. After all, lower taxes mean more money in our pockets to spend. Trump has said he’s considering making the individual and estate tax cuts from his 2017 bill permanent, along with keeping the corporate income tax rate at 21%.
In the end, many analysts believe these proposals could help boost spending and increase demand. However, according to MSNBC, “Coming on top of Trump’s other inflationary proposals, that would likely lead to higher prices as well.”
Interest Rates
Are higher or lower interest rates better for frugal shoppers? As with so many things in economics, the answer depends on whom you ask.
Traditionally, the Federal Reserve raises interest rates amid high inflation to help cool things off and reduce demand. However, Trump has talked about putting the Federal Reserve more under his control as president — and he’s been clear he prefers lower interest rates.
Here’s the thing about that: Lowering interest rates now would heat things up, increase demand and most likely lead to higher prices for shoppers.
Voter Concerns
It’s important to point out that polls show many Trump supporters believe his plans for the economy will help turn things around and lead to lower prices.
In addition, many Trump supporters and critics of the Biden administration have voiced frustrations with how the current President is talking about inflation and other concerns impacting their money. According to Fox News, “While the Biden administration has pushed a rosy outlook for the economy, critics say these views don’t resonate with many Americans and may cost him in the election.”
Many analysts aren’t convinced that Trump’s plans will bring down prices and inflation.
In fact, according to MSNBC, “If Trump succeeds with all of these plans, American consumers will pay more for imported goods, while the economy overheats due to increased spending, right as domestic manufacturers find themselves paying more in labor costs due to worker shortages.” Further, there are concerns about trade wars and massive changes in U.S. policy leading to global economic problems. All of this would likely lead to higher prices.
