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The Trump administration continues to use the threat of tariffs to negotiate with Mexico, Canada, and China, raising concerns about a possible economic war with those nations. Some fear that this tension will wreck our economy, but the reality is, it probably won't.
Financial planner Richard Rosso believes our economy can weather any short-term issues stemming from tariffs. He said, "When you look at our economy compared to the rest of the world, we're still the best economy out there, as dysfunctional as we might look to each other."
As for long-term issues, Rosso doesn't think there will really be any. He believes that both Mexico and Canada will come to the table and work with President Trump. He said, "In the longer term, I think you work it out with Mexico, and you work it out with Canada. They need us more than we need them."
Rosso says the important thing to remember right now is not to get too glued to headlines and not to make any knee-jerk reaction changes to your financial situation. If you're worried about temporary price increases due to tariffs, he suggests shopping around and purchasing "Made in America" products that won't be subject to Trump's tariffs.