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President Trump’s tariffs expected to hit wallets of Americans: Bay Area economist

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Published  April 4, 2025 7:05pm EDT
Tariffs
FOX 13 News

Shoppers concerned about Trump's sweeping tariffs

FOX 13's Aaron Mesmer reports.

The Brief

    • President Trump's sweeping tariffs could hit the wallets of Americans, a local economist says.
    • Experts believe the price of food will increase first, including items like coffee and chocolate, which are largely produced outside the country.
    • The president believes tariffs will force Americans to buy more American-made products, leading to an economic boost and U.S. job protection.

TAMPA, Fla. - President Trump's sweeping tariffs could hit Americans where it hurts: Their wallets, according to a local economist whose views were shared by experts across the U.S.

Michael Snipes, an economics professor at the University of South Florida, joined the chorus of people predicting stores will pass along rising costs to consumers.

READ: Should you sell your stocks now? What to know amid Trump tariffs and market turmoil

What they're saying:

"The way tariffs work is as soon as the importer gets their bill of sale, that is when the tax is applied. So China or Japan or whoever we're importing from, they're still able to export their goods at the same cost. It's just when those goods hit the United States, that's when the text gets applied," Snipes told FOX 13. "All of these costs that accumulate at the border when these goods come in, a lot of these costs are going to get passed off to consumers downstream."

Experts believe the price of food will increase first, including items like coffee and chocolate, which are largely produced outside the country. Snipes believes a second wave of increases could hit clothing, electronics, furniture and cars.

"Those are things that we might not see for another month, two months, because, well, those raw materials still have to go through the process of becoming a final good," Snipes said. "Really, I think most immediately, it's probably going to hit grocery prices initially, then after that I would expect more kind of durable items."

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The other side:

The president, however, believes tariffs will force Americans to buy more American-made products, leading to an economic boost and U.S. job protection. He's predicted a short-term sting, but a long-term positive impact.

"It's going to be a booming country, a very booming country. It's going to be amazing, actually. We see it, because we have trillions of dollars committed to come in," President Trump said this week.

By the numbers:

The president's tariffs include a blanket 10% tariff on most countries, with some seeing tariffs between 20% and more than 40%.

The Source: The information in this story was gathered through an interview with Michael Snipes, an economics professor at the University of South Florida. It also includes information and statements made by President Donald Trump. 

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