Trump's Tariffs: One Thing You Definitely Should Not Do In Reacting To Them

Hi, my friend. How are you feeling?

Nervous? Confused? Scared? Downright panicked?

I get it. It is a strange and uncertain time in our economy, so I wanted to reach out and share a few quick thoughts with you.

Let’s get right to it...

What you absolutely should not do

One thing you definitely should not do in reaction to the tariffs implemented by President Trump is panic. (BTW, if you have no idea what I’m talking about or even what the heck a tariff is, this BBC post does a nice job of laying it all out.)

Easier said than done, right? I hear you. When there’s so much chaos and so much that seems out of your control, taking quick action can make you feel better. I get it. But keeping calm is so, so important.

Here’s a prime example …

Many, many headlines in recent days have talked about how these tariffs will send the price of automobiles higher. That is almost certainly true, and it has caused many Americans to head to dealerships trying to beat the price increases.

Makes sense, right? If you know something you need will be more expensive tomorrow, why not buy it today instead if you can afford it?

Here’s the thing, though… People make bad decisions when they’re rushed. That’s true in virtually all aspects of life, and money is certainly no exception. If you rush to buy a new car in hopes of beating the tariff-driven price increases, you may not take the time to:

• Shop for the best interest rates and get preapproved before you visit the dealer.

• Research which cars get the best gas mileage, are the most reliable, have the best resale value and are generally just seen as the best product.

• Look at multiple dealers in your area to see if one across town or a short drive away might have a better deal on a car you really like.

All of those moves can have a very real impact on the price you pay for your car and the value you get from it once you drive it off the lot. In short, it is already going to cost you a ton to buy that new vehicle — failing to do your homework and comparison shop can just make a bad situation even worse.

Let me be clear, though: Prices are likely to rise. We don’t know by how much or for how long — anyone who says they know is just speculating — but we do know that they are likely to rise. That means that it may make sense to consider buying a car sooner rather than later if you’re in the market for one or think you might be soon. Waiting too long can lead to you paying more. However, that doesn’t mean that you need to act so quickly that you forgo all of your due diligence to do so.

About those investments… Just don’t look.

That doesn’t just apply to car shopping either. It is certainly also true when it comes to the stock market. Seeing massive daily decreases can be super-scary, especially if you’re nearing retirement. (If that’s you, consider speaking with a certified financial planner to map out your next moves.) However, for most people, the best thing to do with your 401(k) and other investments is nothing.

Seriously. Nothing. Don’t make moves. Don’t sell. Don’t even look at them. Trust the process.

Our stock market goes up and down constantly. It is a roller coaster, but in the long run, if you’re willing to ride out the ups and downs, you generally come out ahead. Big drops happen, but so do big jumps, and if you pull your money out of the market, you may miss out on those jumps, and that’s the last thing you want.

Again, I get that this is easier said than done, but it is the right move.

Take a moment and just breathe

It is easy to get caught up in doomscrolling or obsessing over news coverage when big economic news happens, but it doesn’t really help. Stepping away from time to time is crucial.

I always recommend a meditation app called Headspace for such moments. This isn’t an ad, and no one is going to pay me if you click on the link. It is just a product that I use and believe in. There are plenty of other options, too, including free guided meditations on YouTube and other places. Whatever your preferred tool, consider meditation if you’re looking for a mental health break.

Or if meditation isn’t your thing, any type of healthy activity that you rely on to relieve stress can be a great option. Sometimes just a quick walk with your partner or your pet can make a big difference.

Of course, a good book can help, too. I’m kinda partial to this one.

Spread the word

I’d love your help in growing the Ask, Save, Earn community, so I’ve introduced a rewards program for those who refer people to sign up. If you bring enough people on board, it can even get you a one-on-one Zoom call with me. Check out the details and let me know what you think.

Thank you!
Matt