America First Economics: How Trump's Policies Will Shape Your Wallet | Weekly Business Briefs w/ Martin Perdomo

The financial landscape is shifting dramatically, and Martin Perdomo, the Elite Strategist, breaks down three major developments that could reshape your investment strategy in 2025 and beyond.

HELOC rates have fallen to their lowest point in two years at 7.29%, following the Federal Reserve's decision to cut interest rates by 1.5 percentage points since late 2024. This creates a significant opportunity for homeowners to save thousands over the life of their loans—up to $700 annually on a $50,000 HELOC compared to last year's rates. For the financially educated, this isn't just about savings; it's about strategic wealth-building. As Martin explains, when used properly, HELOCs become powerful investment tools, particularly for real estate ventures that can generate substantial returns when executed with discipline and knowledge.

Former President Trump's announcement of new tariffs on Mexican and Canadian imports effective March 2025 represents another seismic shift. These tariffs—reaching as high as 20% on some goods—will impact approximately $200 billion in annual trade across North America. The automotive industry faces particular disruption with projected 10-12% cost increases per vehicle. This raises profound questions about the balance between short-term economic pain and long-term strategic benefits. Are we witnessing the economic embodiment of "sacrificing short-term pleasure for long-term gain"—the principle that underlies most wealth-building strategies? The answer remains hotly debated.

Meanwhile, companies violating export regulations face increasingly severe penalties, with over $500 million in fines issued in 2024 alone. This enforcement particularly targets sensitive technologies with potential military applications being exported to strategic competitors like China and Russia. For businesses operating in these sectors, compliance has never been more critical as penalties continue to escalate under intensified national security concerns.

Ready to navigate these complex financial waters with expert guidance? Visit wealthiafai to schedule a 30-minute strategy call and discover how our private community can help you leverage these market shifts to build sustainable wealth.

Chapters

• 0:00 Episode Introduction
• 0:20 HELOC Rates Drop to Two-Year Low
• 1:46 Trump's New Tariffs on Mexico and Canada
• 6:24 Export Violations and Financial Penalties
• 10:16 Closing Thoughts and Feedback Request

Transcript

Speaker 1: 0:00

Welcome back to the Wealthy AF Business Brief where we break down the latest business economic trends that impact your investments and entrepreneurship journey. I'm your host, martin Perdomo, the Elite Strategist, and today we've got three major stories making headlines. Let's dive in. The average home equity line of credit HELOC rate has dropped to its lowest level in two years, falling to 7.29%, down from 8% in the second half of 2024. This significant drop follows the Federal Reserve's decisions to cut interest rate in late 2024, giving homeowners a chance to borrow against their home equity and reduce costs. Heloc rates are closely tied to the Federal Reserve's benchmark interest rates, which have been cut by 1.5 percentage points since last year. This could mean borrowers can save thousands of dollars over the life of their HELOCs. For example, on a $50,000 HELOC, homeowners could save $350 to $700 annually compared to last year's higher interest rates. Experts suggest that now is a critical time for homeowners to take advantage of these lower borrowing costs. Now is a critical time for homeowners to take advantage of these lower borrowing costs, particularly those considering home improvements, debt consolidation or emergency cash needs. However, they caution that these favorable rates could reverse inflation if inflation reaccelerates or the Federal Reserve changes its policy in response to market condition. Helocs are a great tool for the financially educated to go and make good investments. Again, helocs could be a great tool to, for instance, to invest in real estate. For the financially educated that can create a clear business plan to buy a property, rehab it and flip it, pay the HELOC back and make $20,000, $30,000, $40,000 on that money. This is one of the ways the rich people use debt to create wealth. We teach you how to do that in our coaching program. If you want to learn how to do that, just go right to wealthiafai and sign up there and call us and go to the contact us. Hit us up and we'll schedule a 30-minute call with me so we can see how you can join our private community.

Speaker 1: 2:46

Former President, donald Trump has announced a sweeping new set of tariffs on goods imported from Mexico and Canada Effective March 4th 2025,. This move marks Trump's latest effort to renegotiate trade terms that he claims have disadvantaged US manufacturers. The tariffs are expected to hit key sectors including automotive, agriculture and consumer electronics, with some items seeing tariffs as high as 15 to 20 percent. To 20 percent, the tariffs could affect 200 billion dollars in goods traded between the us and its north american neighbors annually. For america automotive industry alone, which heavily relies on parts and vehicles imported from mexico and canada, the tariffs could increase production. Please take note if this happens and the cost goes up for tariffs by 10-12% per vehicle, note that if you're in the market for a car, you will pay more. For a car, you will pay 10-12% more per vehicle.

Speaker 1: 4:07

Critics, including many business leaders, warn that these tariffs may lead to higher prices for American consumers, particularly on products like cars, food and electronics. Agriculture groups have also expressed concern about retaliatory tariffs from Mexico and Canada, which could disrupt supply chains and hurt US exports. The announcement has already triggered uncertainty in the financial markets, with some companies forecasting higher operating costs in the coming months. Despite concerns, trump defended the decision, stating that the tariffs are necessary to level the playing field and bring manufacturing jobs back to the US. Economists, however, cautioned that the long-term impact could reduce economic growth and lead to higher inflation.

Speaker 1: 5:05

As a leader, we sometimes have to make difficult decisions for the good of our household, of our country, and sometimes those decisions are short-term pain for long-term gain. Is the decision that Trump is making on these tariffs? Are those decisions good for the long term and hurt us only in the short term. This is how wealth truly is created. Self-made millionaires sacrifice short-term pleasure for long-term gain. Success is about stacking sacrificing short-term pleasure for long-term gain. Is that what is happening here that we may have to get short-term pain in pricing for long-term success? What do you think? I'd love to hear your thoughts.

Speaker 1: 6:24

Us companies that violate export regulations could face massive financial penalties in the upcoming months, according to former Commerce Department officials. Matt Axelrod, who previously oversaw enforcement of export controls, highlighted an increasing focus on national security-related exports, with fines potentially reaching into the millions of dollars for serious breaches. In 2024 alone, us authorities issued over $500 million in fines to companies found guilty of violating export rules. The penalties stem from violations involving restricted technologies, particularly with potential military applications. The US is particularly concerned about exports to countries like China and Russia, as these violations are seen as national security risks. Of course, these are our biggest adversaries. Axelrod also pointed out that the fines are likely to increase as enforcement ramps up. Companies are being urged to tighten compliance protocols, as the consequences of noncompliance can be devastating million in fines for exporting semiconductors used in military applications, violating the United States Department of Commerce export regulations. The stricter enforcement is part of a broader strategy by the US government to control the flow of sensitive technologies that could be used by adversarial nations. Companies, particularly in the tech and manufacturing, should review their export process and seek expert advice to avoid severe financial penalties in the future.

Speaker 1: 8:29

I want to ask you a question, viewer, listener. If you're competing in a sport, right, and you have a particular training regimen that you use that gives you an advantage, will you share that with your competitors, right? Will you share that with your competitor? If we're competing for dominance in business and leadership, will you share your secret sauce? Does Apple share their secret sauce with their competitors? Do they so?

Speaker 1: 9:09

Is what Trump doing good here to protect the American interests? I don't know. What do you think? If someone comes to your house and tries to dishonor you and or break the rules that you've set in your house for you and your family, would you be okay with that? If someone came to your home and told you and your children what to do in your home, or take away food from your plate to take it to their world or to give it to strangers, would you be okay with that? I don't know. I'd like to get your thoughts on that.

Speaker 1: 10:16

Do you think that this is what Trump is doing protecting America first, when he says, put America first, what do for export violations? With penalties expected to increase as enforcement tightens, with penalties expected to increase as enforcement tightens? Love to hear your feedback on this. What are your thoughts? Do you agree with what Trump is doing? Putting America first agenda? Do you disagree? If you agree, I love to hear why you agree. If you disagree, I also love to hear your perspective on why you disagree. Either way, we're all human beings, we're all one race, the human race, and we just all think differently, and I'd love to hear your thoughts on it. Thank you for watching, appreciate you, listening, peace out.