Should Credit Unions Worry About US Tariff Policy?

As domestic financial service providers with little or no imports or exports, should credit unions be concerned about Trump’s tariff policy?   Will it have any impact on their members and communities?

I believe the answer to both questions is yes.  In almost universal critiques, the approach is lacking any economic sense.

From the Center for Strategic and International Studies (CSIS) on April 8, 2026, Trump Scores Own Goal:

In the trade world, early indications are that Trump has just committed one of the greatest own goals in history, and, what’s more, it was deliberate. The immediate market reaction was sharply negative, but it will take time to determine how bad things will be.

And here’s why:

• Through his actions and the way the tariffs were rolled out, Trump has signaled that the United States is an unreliable friend and partner. That will come back to bite future administrations because once the bonds of trust and confidence are broken, they are exceptionally difficult to restore.

• Globalization may be on life support, but it’s not going away, except maybe in the United States. Its enabling tools—digitization and enormous cost reductions in transportation and communication—are still here, and businesses will continue to use them. Creative companies will find new paths and create a new equilibrium without us. That will hurt our growth, but also our ability to innovate and create as we isolate ourselves.

• Tariffs are a regressive tax. They impose the greatest burden on low-income people who spend most of their money on necessities such as food and clothing—the very things most likely to see price increases as a result of the tariffs. Ironically, the revenue generated by the tariffs, which CSIS estimates at $600 billion per year, will be used to finance the extension of Trump’s tax cuts, which primarily benefit the rich.

The consensus is that the current approach will damage the economy, raise prices and slow  growth.  Not to mention increase US isolation in the existing global world of trade and alliances.

Implications for credit unions

1. Indentify members and firms in your community most at risk.
2. Develop prgrams to help them navigate the economic uncertainties.  This  usually means extending lines of credit.
3. Enhance core market opportunities.  Avoid undertaking new risk as members who face growing uncertainty will seek the security of established and trusted relationships.

Your thoughts?