When trade negotiations failed, last Friday the US increased tariffs to 25 percent. China responded by increasing tariffs, as well.
Chair of the Purdue Fort Wayne Economics and Finance department, Nodir Adilov, said tariffs will impact the whole economy, not just trade.
“When the U.S. dollar gets stronger in international markets, it makes imports relatively cheaper, and our exports relatively more expensive for foreigners to purchase,” said Adilov.
With exchange rate fluctuations, consumers can see the trickle down effect of trade tariffs. WANE 15 talked to local consumers outside of Kroger on State Boulevard.
“I think there are other ways to address this issue, but it’s especially impactful on the folks that are already struggling to pay their bills and buy necessities,” said resident Jennifer Showalter.
The price change won’t go into effect right away. Adilov says maybe over the summer months, a change in prices could creep in.
Adilov added that through trade between countries, both countries can be more efficent, and economists don’t like trade barriers such as tariffs.
“The net effect is usually negative because while you’re helping some industries, some other parts of the economy will bare the cost,” Adilov said.