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​What To Do With Your Money If Trump Changes the FDIC

There’s growing concern over potential changes to the FDIC (Federal Deposit Insurance Corporation) under a second Trump administration. Discussions by Trump allies have included dismantling the FDIC and transferring its responsibilities to the U.S. Treasury, raising fears about deposit insurance and banking stability.

Key Takeaways:

• FDIC's Role: The FDIC insures bank deposits up to $250,000 per depositor, per account type, per bank. It also supervises banks for soundness and enforces consumer protection laws. If eliminated, $10.7 trillion in insured deposits would be at risk.

• Unlikely to Disappear: Experts, like Cory Frank (Robora Financial), believe eliminating the FDIC would face major legal and economic hurdles. A shift in responsibilities to the Treasury might occur, but protections could remain.

• Other Protections Exist: Even without FDIC coverage, many banks use risk management strategies (e.g., capital reserves, diversified portfolios) to protect deposits.

• Don’t Panic: Financial experts urge calm. Avoid rash decisions that could trigger bank runs. Instead, monitor your bank’s health through public financial reports and regulatory ratings (e.g., FFIEC database).

• Credit Unions Aren’t Always Safer: Credit unions are insured by the NCUSIF (National Credit Union Share Insurance Fund) up to the same limit. While they may appear safer if FDIC is dissolved, experts say that’s unlikely and larger banks often have stronger oversight.

• Diversify Deposits: Spread funds across multiple institutions to stay within insurance limits. Consider other safe financial vehicles like money market funds, short-term government securities, or even private deposit insurance.

Experts agree that while talk of changes to the FDIC has sparked fear, drastic moves are unlikely. Staying informed, consulting advisors, and diversifying your holdings are your best financial defenses. Read More.

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Trump Declares April 2 as ‘Liberation Day’ for Tariffs

President Donald Trump has dubbed April 2, 2025, “Liberation Day” — a date when he plans to roll out a sweeping new tariff strategy aimed at reducing U.S. reliance on foreign goods. The plan includes “reciprocal tariffs” that match what other countries charge on U.S. exports.

What to Expect:

• Tariff Uncertainty: While Trump has promised reciprocal tariffs on nearly all trading partners, exact details are unclear. Tariffs may be product-specific or broad, and could reflect other countries’ taxes and subsidies.

• Countries Targeted: Likely targets include the EU, South Korea, Brazil, and India. No country-wide exemptions are planned.

Tariffs Taking Effect This Week:

• April 2:

  • A 25% tariff on countries that buy oil/gas from Venezuela (including the U.S.)

  • End of delay on tariffs for Mexican and Canadian imports under USMCA.

• April 3:

  • 25% tariffs on fully-imported cars, with parts following in phases until May 3.

Already in Effect:

• China:

  • 10% tariff on all imports (Feb 4), increased to 20% (March 4).

  • China responded with tariffs on U.S. coal, LNG, crude oil, and farm products.

• Steel & Aluminum: New 25% tariffs, removing past exemptions.

• Canada & Mexico: Facing 25% tariffs with temporary delays on some auto-related goods; Canada has retaliated, Mexico has not yet but warned it may.

Economic Impact:

• White House claims the tariffs could generate $600 billion annually.

• Economists warn of higher consumer prices, disrupted supply chains (especially in autos), market instability, and reduced consumer confidence.

What’s Next?

• More tariffs are likely on copper, lumber, pharmaceuticals, and tech.

• Retaliation expected: The EU is preparing to hit $28 billion worth of U.S. goods and may act by mid-April.

Trump has said he won’t negotiate until after tariffs are imposed, especially on cars — where the 25% tariff is intended to be permanent. Read More.