St. Joseph's economics professor weighs in on Trump's tariff policy
PHILADELPHIA (WPVI) -- President Trump is calling April 2 Liberation Day.
Trump signed an executive order, implementing 10% baseline tariffs on every country on Earth, effective this coming Saturday.
He is also imposing reciprocal tariffs, which will vary, on what the president calls the "worst offenders." Those tariffs are going into effect next Wednesday.
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St. Joseph's University economics professor, Nancy Ruth Fox, says she understands the plan is to increase revenue and rebuild America's industrial base.
But, she says, you can't have it both ways.
"If I continue buying goods that are produced abroad, that will bring in tariff revenue. But it won't do anything for American production, not anything, but just at a very simple level," said Fox.
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Conversely, she says, if American consumers switch to domestic goods, then the tariff revenue naturally dries up.
Salvatore Auriemma, owner of Claudio's Italian Cheese Shop in South Philadelphia, says he's hoping this is all just some kind of negotiating tactic.
"I think he likes to fire up, you know, get everybody motivated. You know, tell them the worst, and then we will settle. It's a tactic he uses. I think he will back off," he says.
There's nervousness and uncertainty for some following Trump's announcement.
"A lot of the cans that are made in America are taken up by the bigger brewers, so a lot of the smaller brewers like ourselves, our cans will come from Canada," said Jay Vonczoernig, the co-founder of Von C Brewing in Norristown.
The company distributes beer from South Jersey to New York and relies heavily on steel and aluminum to package and prepare its product.
"It's definitely going to be a hardship for us. Whether it's our can cost going up, whether it's our keg cost going up, whether we want to buy a new tank," he said.
Pennsylvania Governor Josh Shapiro is also expressing concern about costs being passed on to consumers.
"This tariff war that he is starting, this button that he is pushing is going to have one effect, and that effect is to drive up costs on consumers and businesses throughout Pennsylvania," he said.
We asked shoppers if they would continue buying their favorite imported goods, if the prices of those items rise due to the tariffs. Reactions were mixed.
Andrea Petrillo, who was visiting from Cleveland, Ohio, says, "It wouldn't have an impact on me. I would still pay for the quality, cut out a few things like cannolis."
But Susan Weiss, of Chestnut Hill, says, "If I could afford to buy a Bentley, I would have to go down to a Volkswagen Beetle instead, but that's not going to happen either way."
Trump says his plan will reduce the trade deficit and even the playing field with countries that are essentially closed to American exports.
Still, many economists say, anyway you slice it, this is a major financial and political risk.
