Updated April 07, 2025 at 14:37 PM ET
The impact of President Trump's tariffs on all imported products continues.
U.S. and global stocks are down as investors deal with the economic consequences of these new taxes. Groceries are expected to get more expensive. And U.S. consumer confidence is low.
So how should the average U.S. household respond?
Personal finance author and Washington Post columnist Michelle Singletary told Morning Edition's Steve Inskeep that she doesn't advise people to go out and stock up on goods.
"You don't want to tie that money up. You might actually need that money instead of for toothpaste, for more food on the table," Singletary said.
Singletary added that the basic U.S. economy is sound, and that while current policies are causing the volatility, a reversal or any adjustments could lead to the market bouncing back. But until it does, she said, it's a "very, very scary ride."
Here are three things Singletary recommends as U.S. households and the market grapple with President Trump's tariffs:
Go ahead and make that big purchase – IF you were already planning on it.
Singletary said she recommends moving forward with purchases that you were already budgeting for – especially if you have a fixed income and a good amount of savings.
"If you were in the market for a car, you were already shopping, [and] you have the funds for it, I would say definitely pull that trigger right now," Singletary said, adding that some automakers are offering incentives in response to Trump's tariffs.
Ford and Stellantis (owner of brands Jeep and Dodge) are now offering employee pricing in response to the president's new taxes on imported cars. Nissan has also cut prices on some of its top-selling cars.
Otherwise, it's time to save money – especially if you're worried about job loss.
Don't go out and buy a better camera, if you don't really need it, Singletary said, adding that it's especially true if you are worried the tariffs could affect your job.
"I would not do that because if you lose your job, that thousand dollars could go towards your rent," Singletary said.
Employers added almost 230,000 jobs in March – a bit of reassuring news after President Trump's tariffs roiled the markets last week.
Singletary warns, however, that an economic downturn and recession could happen fairly quickly and that you'll want to preserve as much cash as possible.
"If you are already living paycheck to paycheck [and] your emergency fund is really low or nonexistent, please cut back now," Singletary said. "Don't wait to see the prices spike. Put that money away just in case you get hit by these tariffs."
Don't look at your retirement account portfolio.
Singletary recommends pulling out just the money that you need from your account and letting the rest sit.
Singletary said she hasn't looked at her own retirement portfolio since Trump announced his plans to implement tariffs and the markets began to slide.
It may be difficult for retirees to look at their retirement accounts and not see losses, Singletary said, adding that she won't tell people not to panic about their own money.
"You've worked hard for it and you need to feel what you need to feel," Singletary said. "But please don't act on those fears because, even in retirement, you could have another 20 or 30 years before you need to touch all of that money."
The radio version of this story was produced by Milton Guevara and Chad Campbell and edited by Olivia Hampton.
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