Protect Your Savings Amid the Tariff War: MFCU Expert Q&A

Protect Your Savings Amid the Tariff War

If you’re reading this, chances are you’re someone who keeps a close eye on global events and how they affect your finances. That’s exactly why we created the MFCU Money Matters blog series to help you stay informed and protect your savings amid the tariff war with insights from trusted financial experts.

In our previous blog on How US Tariff Could Affect the Irish Economy?, we learned everything about what tariffs are and what triggered this tariff war. Today, we will explore how current tariff changes might affect your savings and what you can do to protect your savings amid the tariff war.

Before we start, let’s look at the latest development on the ongoing tariff tensions at the time of writing this blog.

Tariff summary

• On 2nd April, Donald Trump announced reciprocal tariffs on almost all countries worldwide. While most nations are still evaluating the situation, China was quick to retaliate with its own set of tariffs on the U.S a few days after
• On 11th April, amid a falling U.S. market, the government reduced the reciprocal tariff to baseline 10% on all countries but increased tariffs specifically on China that currently stands at 145% on all Chinese goods and up to 245% on certain items
• The European Union is considering countermeasures, though the Irish government has requested that the pharmaceutical industry be excluded from any EU retaliation
• On 21st April, China warned other countries against striking trade deals with the U.S. at its expense. The warning comes amid reports that President Donald Trump’s administration is pressuring nations to isolate China

How Pharma Tariffs Could Impact Ireland

When trump administration talks about pharmaceutical tariffs then this is something is of great concerns for us because medical and pharmaceutical products make up nearly 45% of Ireland’s total exports and nearly 60% of our trade with the U.S.

So when the U.S. signals tariffs on this sector, it’s a cause for real concern. With over 50,000 people employed in pharma and medical sector across the country, the ripple effect of such tariffs could hit other sectors and the wider economy too.

Expert Advice to Protect Your Savings Amid the Tariff War

So, we sat down with Edwina Cunnane, Head of Finance at Member First Credit Union to get her expert take on how our members can navigate their finances during this turbulent time.

Q1: How do I protect my savings during the global tariff war?

The first step I would recommend anyone to take is to first assess your financial health. Ask yourself whether you have enough savings to cover your day-to-day expenses for the next 5-6 months. If you do, you’re starting off in a really good position. If not, it may be wise to put a pause on some big expenses to allow you to focus your attention on building up your savings. For existing debts, consider paying only the minimum and redirecting any extra funds to your savings. The key is to protect your savings amid the tariff war by building a financial cushion to weather any challenges ahead.

Q2: Could tariffs force me to dip into my savings?

In the short term, it’s unlikely, but if the tariff situation persists, the economy could feel the strain. Ireland is more exposed than other European countries due to our higher exports to the U.S. If things worsen, we may need to dip into our savings. Businesses will more than likely pass on the tariffs to consumers, so unfortunately, we’re likely to see price increases. The key now is to focus on protecting your savings amid the tariff war and managing any potential uncertainties.

Q3: Should I increase my savings during this time?

Absolutely, if you can increase your monthly savings, I strongly recommend that you do. I understand that with prices rising, not everyone may be able to increase their savings. Good financial habits will allow you to weather the current uncertainty in the economy. Even if Ireland isn’t hit as hard as other countries, the rising political and economic instability makes it important to prepare. The current tariff pause lasts just 90 days, and after that, we could face a 20% U.S. tariff again. So, it’s wise to protect yourself by building that savings cushion now.

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Q4: Is now a good time to make major purchases?

It really depends on your financial situation. If your finances are tight, it’s wise to hold off on major purchases to avoid debt. However, if you have steady income and savings, a small personal loan can help cover planned expenses like a holiday or home improvements without draining your savings. The key is to protect your savings, manage repayments, and stay on track.

Q5: What if I face unexpected expenses due to price increases?

That’s a really fair concern, especially right now. The last thing you want is to dip into your savings for something sudden or short-term. In times like these, a low-interest personal loan can give you more control. Some might see loans as a negative, but if you’ve got unavoidable expenses, fixed repayments can make planning easier. And if things improve, you can always pay it off early. It’s all about protecting your savings and staying financially steady.

We hope this quick Q&A helped you feel more confident about managing your savings. Remember, saving for uncertainty is always a smart move. And if you need a little extra support, drop into your nearest MFCU branch or apply for a loan online.

And, do remember, we’re not here for profit, we’re here to support our members and community