Victor Ortega RIO GRANDE VALLEY – With President Donald Trump’s tariffs on imports paused for some nations and active for others, there is a lot of uncertainty on how this action could affect the U.S. economy.
Francisco Aldape, an Economics lecturer, said Trump is trying to create more incentives for companies to not only bring jobs to the U.S. but also to invest in the country.
With tariff rates not seen in America since the 1930’s, the Trump administration aims to strengthen the economy.
The White House website states over 70 countries have entered negotiations to establish new trade deals with the U.S.
If tariffs do go into effect, prices for goods including cars could see a noticeable increase.
“So, typical example would be that of a truck or, you know, one of these SUVs,” Aldape said. “Instead of costing, I don’t know, $70,000 would increase to 75 or $80,000, just because of the way that the auto industry in the U.S. and the North American region has been put together.”
The potential increase in cars and spare parts is seen by some UTRGV students as necessary for economic growth while others view tariffs as damaging to the economy.
But Gael Verdines, a business administration sophomore, believes the possible price hike will benefit America in the end.
“Many of [my family’s friends] have lost their jobs because of the tariffs and the shortages of employees,” Verdines said. “Maybe the economy may improve through these tariffs. It may be a long process. It may be difficult for Americans to face. But I do think that [in] the long run, it will be beneficial for the American people.”
On the other hand, the increasing cost is seen as damaging by social work sophomore Caleb Conde.
“Everything is increasing,” Conde said. “Price of groceries are increasing, gas is also increasing. All these prices of cars are going to increase and all that. And I honestly believe, my opinion is, what he’s doing is definitely not benefiting our economy. And it’s definitely not benefiting his people and the people of this nation.”
Aldape added that it is only a matter of time before the true impact of tariffs can be measured.
“Probably one important data point that is going to come out next month to see if this has had any impact on the people [is] the number of [unemployment],” Aldape said. “Or how many jobs have been lost as a result of this uncertainty.”
Trump launched an investigation last week looking into ensuring a secure and sustainable domestic supply of essential materials including wood and steel.
The investigation will produce a report detailing risks and providing recommendations to strengthen domestic production.
