Experts have raised concerns over consumer spending. As Trump’s tariffs begin this month, an impending recession could be on the way as consumers pull back spending and adopt a “wait-n-see” attitude. The Tariff Scare has attracted worldwide attention, spawning fears of a trade war, and causing a negative backlash towards America.

Top analysts are monitoring the situation, informing the masses to pay attention to their spending habits.

Here are the facts you need to know about tariffs and how they will impact consumer spending:

What are Tariffs?

Tariffs are imposed taxes by one country on the goods and services imported from another. When natural resources are gathered, they are imported and exported to areas where they may not organically exist. This also includes regions of the world that have the means of producing certain goods and services.

Geopolitics, policies, and competition—including additional factors—can influence the emotions of those involved. President Trump’s recently imposed tariffs on Canada, Mexico, and China – as well as over 60 other countries — have caused international anger towards the USA and retaliation ranging from higher tariffs on imported American goods, travel boycotts, and even hostilities by Europeans towards America’s military in uniform and citizens traveling abroad.

Red Flag Economy

At this point, the majority of Americans are alarmed. Top analysts reveal many Americans can simply not afford to spend an extra 15-40 percent of their current income. With prices going up and jobs being cut, people are beginning to panic—and for good reason. There seems to be no rational strategy for this move by the Trump Administration, which is causing instability in the stock markets and serious concern among major corporations that rely on foreign products for the goods and services they manufacturer and sell state-side.

This concerning move is beginning to wreak havoc on the economy and the daily lives of many Americans. The top 10% of income earners are responsible for 50% of consumer spending. A majority of economists recently polled overwhelmingly stated the Tariff Strategy is not good for the American economy and could plunge the global economy into a downward spiral that would take years to reverse. Experts are concerned that people in the middle, lower, and poverty-level classes have no additional funds to spend on anything.

The dream of owning a home has been removed for many Americans. The average age of first-time homebuyers has increased from 26 years old to 38 years old. Many would argue the American Dream is now a figment of the imagination as the majority of Americans can no longer afford their rent, let alone a mortgage. Even with two-income families, millions of people are barely making ends meet.

What’s To Come

A majority of economists, who represent both sides of the political aisle, believe that now is the time to remain cautious. As the stock market continues to stagger, investors are worried. The tariffs alone have caused anxiety across the nation, revealing the ugly underbelly of what could come—a recession.

Many economists are marking down their projected estimates for any business growth this year. A growing number of economists now see the odds of recession increasing by summer 2025. If a recession occurs, it will mark a prolonged period of negative economic growth. Projecting forward 12–18 months, many respected economists, including several who served on the president’s Council of Economic Advisors, foresee asset bubbles bursting, unexpected stock price shocks, and an overheating economy that the Federal Reserve cannot control or manage. When these factors are mixed together, economists fear it will be a recipe for a national – and possibly, a global disaster. This is why it’s best to prepare yourselves financially now.

What You Can Do To Prepare

The best thing to do is remain calm and level-headed. Limit all your spending to nothing other than essentials. Stockpiling money in your emergency fund—or creating one if you don’t have one already—is the right strategy.

Recessions happen, and the country has made it through many of them before. The resilience of the American people will be severely tested once more as a new wave of tariffs takes hold and other nations retaliate. Stay vigilant, be observant, and do your best to resist spending money needlessly.

Bottom Line

Experts state now is the time to watch your spending. As a recession looms—and possibly the next Great Depression — you should take action now. You can limit your spending and cut costs wherever possible.

The economy is being bombarded with a major red flag as stock markets will continue to plunge some 15-24 percent. More tariffs mean more negative impacts on the economy. If you are invested in stocks or mutual funds, consider putting your savings in long-term CDs at your credit union or bank that will guarantee you a return of 4-6 percent. That’s a better bet than losing 15-24 percent in the stock market over the next 18 months. Also, arm yourself with as much knowledge as possible about the market and keep saving money in case things really get bad. Financial stability and increasing your savings is the most important factor for all Americans right now.