However, President Donald Trump’s tariff policies threaten to inflate the cost of the American Dream and reshape the path to financial security. Some experts said Trump’s economic and trade policy shifts make once-attainable milestones more expensive, harder to plan for and out of reach for many middle-class families.
Tariffs on materials like steel, lumber and copper directly raise construction costs. These costs are passed on to buyers and increase the price of new homes and renovations.
“Tariffs squeeze the dream by inflating the base layer,” said Shane Lucado, CEO of InPerSuit Inc., a legal technology company. “You slap a tariff on construction inputs and suddenly a $280,000 starter home costs $317,000 before interest.”
Lucado explained, “That jump kills the down payment plan for a first-time buyer working with a $60,000 salary. Stretching budgets is one thing. Rewriting your life math is another.”
Tariffs raise car prices because they increase the cost of parts and materials. For consumers, it means more debt, longer loan terms and fewer options.
“We have to remember the price increase is not only on the end product, but also on the parts and raw materials that come from all over the world prior to assembly,” said Babak Hafezi, CEO of HafeziCapital. “Thus, you are paying multiple tariff taxes for the same product.”
Hafezi added, “As costs increase, people may be forced to buy smaller cars with less options — because of affordability — or be forced into the used car market.”
Inflated Beginnings
Tariff-driven price increases on starter homes, cars and essentials make it harder for first-time buyers to gain traction, especially without the equity or stable wages that previous generations enjoyed.
“Younger Americans catch the worst of it, because they are the first generation paying inflated prices on everything without the benefit of long-held equity,” Lucado said. “Their parents bought homes when rates were 4% and wood was cheap.
“Now, 20-somethings are getting boxed out before they even apply. … When 50% of your take-home pay is housing and transportation, the rest of the dream starts evaporating.”
Delayed Access to Essentials
Achieving the American Dream depends on stable access to goods that make those goals possible. However, as tariffs ripple through supply chains, they drive up prices, delay essentials and put the American Dream on backorder.
“To absorb higher costs, companies will likely have to raise prices and alter supply chains, in turn raising prices for consumers, affecting availability and delaying shipping times,” said Javier Palomarez, CEO of the United States Hispanic Business Council.
Delayed supply chains cause middle- and low-income households to strain their budgets and review their purchase preferences, said Michael Podolsky, consumer advocate and co-founder and CEO of PissedConsumer.
“Some shoppers already report facing additional costs and delayed deliveries with customers, leaving them with higher bills,” Podolsky said. “In some cases, parts for things like appliances or home products become harder to purchase, which directly affects essential purchases.”
Keeping It Costs More
Homeownership is central to the American Dream. However, tariffs are making it more expensive to hold on to. When emergency repairs spike due to higher material costs, even insured homeowners can find themselves facing unexpected bills that threaten their financial stability.
“If your roof leaks or a storm damages your home, those repairs can become hundreds or thousands of dollars more expensive due to tariffs,” said Elena Novak, a real estate analyst at PropertyChecker.
Novak added, “Insurance often won’t cover the full cost if prices have jumped. So, for many families, it’s not just about buying home, it’s about affording to maintain it.”
Deferred Dreams
The American Dream depends on long-term planning, such as saving for a home, a child’s education or retirement. However, when tariffs drive up everyday costs, families are forced to delay those goals, using savings to manage immediate needs instead of building a stable future.
“You want to plan for childcare or a second car, but those plans get wiped when a supply-chain shock adds $7,000 to your renovation budget,” Lucado said. “You start reshuffling savings to patch short-term damage instead of building toward anything long-term. That erosion does not show up in headlines. It shows up in delayed milestones, smaller families and crushed expectations.”
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