New tariff policies put in place by President Donald Trump have sparked national controversy and, for some, confusion. Many Troy University students shared their concerns with The Tropolitan.
According to the International Trade Administration, a tariff is a tax levied by governments on the value of imported products. Businesses that import their products pay the tariff.
Tariffs are intended to raise revenue for the government but typically spike the prices on imported goods. In turn, this causes businesses to raise prices, forcing customers to pay more.
Dr. John Dove, professor of economics, explained some of the pros of tariffs.
“One of the arguments in favor of tariffs involves national security,” Dove said. “There might be a number of goods and services produced abroad, but due to national security reasons, it would be in the United States’ best interest to produce those goods domestically.
“Another argument in favor of tariffs is that they save and protect American jobs. Producing goods domestically during wartime as well is also a strong argument.”
Dove also explained the downside to tariffs.
“Anytime that we face a tax, consumer goods are subject to that tax,” Dove said. “The goods that consumers buy from abroad become more expensive and leave us with less disposable income.”
On Feb. 1, Donald Trump placed a 25% percent tariff on all Canadian and Mexican goods.
The president would later pause the tariffs for 30 days due to negotiations with the two countries.
Jackson Kates, a multimedia journalism major from Crestview, Florida, shared his thoughts on the United States placing tariffs on its closest allies.
“I think we need to be sticking with the people that are going to be close to us,” Kates said. “It may not be as important to stick with other countries that don’t have our best interest in mind, but this is not one of those cases.
“If anything bad were to happen, I feel like Mexico and Canada would be on our side. I feel like we’re making enemies out of the people that are closest to us.”
On Feb. 18, Trump teased placing tariffs on the auto industry as early as April 2. According to an article by Fortune, Trump’s auto tariffs wouldn’t just make vehicles more expensive, but would also increase the price of car insurance.
Dylan Rushing, an employee at Jim Whaley Tires, explained what he believes the impending tariffs will do to the auto industry.
“Across the board, we’re going to see an increase in car part prices as well as cars,” Rushing said. “When we place a tariff on another country, they in turn do the same to us.
“In order to keep up with demand, prices will rise, and customers will have to pay more.”
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