Those attending the Bryan/College Station chamber of commerce economic outlook conference heard about the impact of the president’s proposal to increase tariffs.
Economist Lori Taylor, who is a department head at Texas A&M’s Bush school, expects “substantial increases” in the price of a new vehicle. She recommended buying a new vehicle in the next month to avoid higher prices caused by the increased cost of components that are imported to manufacture vehicles.
Taylor also said the increased tariffs vary. For instance, the tariff on cotton shirts is different than silk shirts, the tariff on cotton suits is different than wool suits, and the tariff on men’s golf shoes is five percent while the tariff on women’s golf shoes is 10 percent.
Taylor showed a slide in her presentation stating if increased tariffs are implemented, the impact in the Brazos Valley includes:
- A sharp increase in prices for tradeable goods
- The Federal Reserve may delay interest rate cuts to fight the inflationary impact
- There will be slower economic growth
- Job losses in import consuming industries
- A net overall loss in jobs
- And an ambiguous impact on sales tax revenue
Click below to hear Lori Taylor’s comments at the B/CS chamber commerce economic outlook conference on January 22, 2025 about the impact of increased tariffs if enacted by President Trump.
Listen to “Brazos Valley impact if the president approves higher tariffs” on Spreaker.