Understanding Tariffs: Insights from a Purdue University Professor on Economic Impact – 95.3 MNC

Channing Arndt, a research professor at Purdue University and director of the Global Trade Analysis Project, recently shared insights about tariffs with the Associated Press. He explains that tariffs are taxes on imported goods, designed to boost domestic production. For instance, if the U.S. imports $1 million worth of products and there’s a 50% tariff, then the importer must pay $500,000 in taxes.

The idea is straightforward: by raising the cost of foreign goods, consumers might choose to buy items made in the U.S. However, many popular products are still made abroad, leaving Americans reliant on imports. As a result, prices for certain items are likely to rise, and consumers could bear the brunt of these increases. Arndt points out, “You can expect to pay more for labor-intensive goods for quite some time.”

Tariffs aren’t just about trade. They can be used as tools for political leverage. For example, President Trump threatened tariffs on Mexico to push for action against the flow of fentanyl into the U.S. As Arndt puts it, “Sometimes it’s also for revenue, especially when there aren’t many other sources of income.”

One eye-opening example involves underwear. The U.S. hardly produces any itself, relying almost entirely on imports. High tariffs on these goods will likely lead to price hikes for consumers. “A lot of textile and clothing exporters are facing big tariffs, which means consumers will see higher prices,” Arndt explains.

To deepen this discussion, a survey from the National Retail Federation found that more than 80% of retailers believe tariffs lead to higher prices for consumers. This trend isn’t new; similar patterns occurred in the past when tariffs were used heavily in the 1930s during the Great Depression, exacerbating economic struggles.

Social media reactions to tariffs often express frustration. Users on platforms like Twitter have voiced concerns over rising prices and the availability of goods. The hashtag #TariffImpact has gained traction as people share their experiences with increasingly expensive daily items.

For further reading on tariffs and their implications, you can check out this [report from the U.S. International Trade Commission](https://www.usitc.gov), which offers comprehensive data and analysis.

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