Every President has a major impact on inflation. Policies around government spending, taxation, and trade relations influence the prices of goods and services. President-elect Donald Trump will return to the White House in January, and it’s good to know how his next term can impact prices.

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Here’s what financial experts have to say about what to expect under Trump’s administration.

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Although Trump’s second term hasn’t started yet, the president-elect has hinted at several changes he intends to make. Arron Bennett, founder and CEO at Bennett Financials, outlines the key policies that consumers should keep in mind.

“Key Trump policies that could influence inflation include his tax policies and trade strategies. By keeping or expanding the TCJA [Tax Cuts and Jobs Act], Trump could continue to support both businesses and middle-class families by ensuring they retain more of their income, reducing inflationary pressure. If more people have discretionary spending power, the broader economy could stabilize, potentially hedging against inflation.”

Bennett also suggests keeping an eye on tariffs.

“However, tariffs play a dual role. While they may incentivize bringing jobs back to the U.S. and support American manufacturing, they could also raise costs for goods, increasing inflation. The potential increase in domestic production costs due to tariffs might translate into higher consumer prices, particularly if China’s prices rise in response to U.S. tariffs.”

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The upcoming Department of Government Efficiency aims to remove unnecessary parts of the government, similar to how Elon Musk laid off more than 80% of Twitter employees when he took over. Bennett views the new program as a hedge against inflation.

“The Department of Government Efficiency could also play a role by cutting bureaucratic red tape, potentially reducing government spending and improving overall fiscal health, which could help counter inflationary pressures. Trump’s approach seems to hedge his bets–while policies like tariffs could increase costs, tax cuts and government efficiency measures could help balance these effects.”

Bennett mentioned that tariffs can lead to higher inflation, but Trump has some hedges in place to minimize inflation’s growth rate. Financial experts, like Ben Johnston, agree that Trump’s policies will increase inflation in the short run.

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