As the Trump administration indicates its intent to add more tariffs, some economists and consumers are uncertain about the future of the economy.
The Stock Market opened Monday to plunging numbers with some economic fears growing as the president has not ruled out the possibility of a recession and a tariff war.
“If a tariff is 20 percent, companies are going to have to raise their price by 20 percent. You can’t blame them for doing that, it saves them, but the consumers end up having to pay more. That’s the problem with tariffs, the other countries don’t pay for them but the US consumers do,” said Cal Poly economics professor Dr. Dan Seiver.
As more and more tariffs begin to hit the U.S. economy, consumers community reporter Ryan Connors spoke with said they're concerned.
“I’m definitely worried about the economy that there’s going to be less growth, especially as we may enter a recession," said Cal Poly student Marcela Bone.
Seiver has been an economics professor for 50 years and says the lack of transparency and reckless nature of the tariffs placed on countries like Canada, Mexico and China are setting the U.S. up for a failed economy
“That kind of uncertainty, businesses can’t plan for anything and for consumers, they tend to cut back on their spending. Consumption spending is 70 percent of our GDP, so if they really cut back on their spending, it can seriously hurt our economy," he said.
Bonet not only worries about the price of U.S. goods but also the future of the workforce.
“It’s concerning when thinking about my career prospects in the future, I’m worried that it’ll be more difficult to find a job post-college, the business cycle might begin to slow down because of the tariffs. especially dealing with international companies.”
President Trump on Monday declined to comment on camera on the stock market plunge.
