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

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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.

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Episode Transcript

Speaker 1 (00:00):
Welcome back to the Wealthy AF Business Brief where
we break down the latestbusiness economic trends that
impact your investments andentrepreneurship journey.
I'm your host, martin Perdomo,the Elite Strategist, and today
we've got three major storiesmaking headlines.
Let's dive in.

(00:20):
The average home equity line ofcredit 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 followsthe Federal Reserve's decisions
to cut interest rate in late2024, giving homeowners a chance

(00:44):
to borrow against their homeequity and reduce costs.
Heloc rates are closely tied tothe Federal Reserve's benchmark
interest rates, which have beencut by 1.5 percentage points
since last year.
This could mean borrowers cansave thousands of dollars over

(01:06):
the life of their HELOCs.
For example, on a $50,000 HELOC, homeowners could save $350 to
$700 annually compared to lastyear's higher interest rates.
Experts suggest that now is acritical time for homeowners to
take advantage of these lowerborrowing costs.
Now is a critical time forhomeowners to take advantage of

(01:27):
these lower borrowing costs,particularly those considering
home improvements, debtconsolidation or emergency cash
needs.
However, they caution thatthese favorable rates could
reverse inflation if inflationreaccelerates or the Federal
Reserve changes its policy inresponse to market condition.
Helocs are a great tool for thefinancially educated to go and

(01:54):
make good investments.
Again, helocs could be a greattool to, for instance, to invest
in real estate.
For the financially educatedthat can create a clear business
plan to buy a property, rehabit and flip it, pay the HELOC
back and make $20,000, $30,000,$40,000 on that money.

(02:15):
This is one of the ways therich people use debt to create
wealth.
We teach you how to do that inour coaching program.
If you want to learn how to dothat, just go right to
wealthiafai and sign up thereand call us and go to the

(02:36):
contact us.
Hit us up and we'll schedule a30-minute call with me so we can
see how you can join ourprivate community.
Former President, donald Trumphas announced a sweeping new set
of tariffs on goods importedfrom Mexico and Canada Effective
March 4th 2025,.

(02:58):
This move marks Trump's latesteffort to renegotiate trade
terms that he claims havedisadvantaged US manufacturers.
The tariffs are expected to hitkey sectors including
automotive, agriculture andconsumer electronics, with some
items seeing tariffs as high as15 to 20 percent.

(03:21):
To 20 percent, the tariffscould affect 200 billion dollars
in goods traded between the usand its north american neighbors
annually.
For america automotive industryalone, which heavily relies on
parts and vehicles imported frommexico and canada, the tariffs

(03:42):
could increase production.
Please take note if thishappens 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 paymore.
For a car, you will pay 10-12%more per vehicle.

(04:07):
Critics, including many businessleaders, warn that these
tariffs may lead to higherprices for American consumers,
particularly on products likecars, food and electronics.
Agriculture groups have alsoexpressed concern about
retaliatory tariffs from Mexicoand Canada, which could disrupt

(04:28):
supply chains and hurt USexports.
The announcement has alreadytriggered uncertainty in the
financial markets, with somecompanies forecasting higher
operating costs in the comingmonths.
Despite concerns, trumpdefended the decision, stating
that the tariffs are necessaryto level the playing field and

(04:52):
bring manufacturing jobs back tothe US.
Economists, however, cautionedthat the long-term impact could
reduce economic growth and leadto higher inflation.
As a leader, we sometimes haveto make difficult decisions for

(05:12):
the good of our household, ofour country, and sometimes those
decisions are short-term painfor long-term gain.
Is the decision that Trump ismaking on these tariffs?

(05:35):
Are those decisions good forthe long term and hurt us only
in the short term.
This is how wealth truly iscreated.
Self-made millionairessacrifice short-term pleasure

(05:56):
for long-term gain.
Success is about stackingsacrificing short-term pleasure
for long-term gain.
Is that what is happening herethat we may have to get
short-term pain in pricing forlong-term success?

(06:19):
What do you think?
I'd love to hear your thoughts.
Us companies that violate exportregulations could face massive
financial penalties in theupcoming months, according to
former Commerce Departmentofficials.
Matt Axelrod, who previouslyoversaw enforcement of export

(06:39):
controls, highlighted anincreasing focus on national
security-related exports, withfines potentially reaching into
the millions of dollars forserious breaches.
In 2024 alone, us authoritiesissued over $500 million in
fines to companies found guiltyof violating export rules.

(07:05):
The penalties stem fromviolations involving restricted
technologies, particularly withpotential military applications.
The US is particularlyconcerned about exports to
countries like China and Russia,as these violations are seen as
national security risks.

(07:26):
Of course, these are ourbiggest adversaries.
Axelrod also pointed out thatthe fines are likely to increase
as enforcement ramps up.
Companies are being urged totighten compliance protocols, as
the consequences ofnoncompliance can be devastating
million in fines for exportingsemiconductors used in military

(07:48):
applications, violating theUnited States Department of
Commerce export regulations.
The stricter enforcement ispart of a broader strategy by
the US government to control theflow of sensitive technologies

(08:12):
that could be used byadversarial nations.
Companies, particularly in thetech and manufacturing, should
review their export process andseek expert advice to avoid
severe financial penalties inthe future.
I want to ask you a question,viewer, listener.
If you're competing in a sport,right, and you have a

(08:39):
particular training regimen thatyou use that gives you an
advantage, will you share thatwith your competitors, right?
Will you share that with yourcompetitor?
If we're competing fordominance in business and
leadership, will you share yoursecret sauce?

(09:00):
Does Apple share their secretsauce with their competitors?
Do they so?
Is what Trump doing good here toprotect the American interests?
I don't know.
What do you think?
If someone comes to your houseand tries to dishonor you and or

(09:22):
break the rules that you've setin your house for you and your
family, would you be okay withthat?
If someone came to your homeand told you and your children
what to do in your home, or takeaway food from your plate to
take it to their world or togive it to strangers, would you

(09:46):
be okay with that?
I don't know.
I'd like to get your thoughtson that.

(10:16):
Do you think that this is whatTrump is doing protecting
America first, when he says, putAmerica first, what do for
export violations?
With penalties expected toincrease as enforcement tightens
, with penalties expected toincrease as enforcement tightens
?
Love to hear your feedback onthis.
What are your thoughts?
Do you agree with what Trump isdoing?

(10:37):
Putting America first agenda?
Do you disagree?
If you agree, I love to hearwhy you agree.
If you disagree, I also love tohear your perspective on why
you disagree.
Either way, we're all humanbeings, we're all one race, the
human race, and we just allthink differently, and I'd love

(10:58):
to hear your thoughts on it.
Thank you for watching,appreciate you, listening, peace
out.