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What might happen if Trump’s tariff plan goes into effect?
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What might happen if Trump’s tariff plan goes into effect?

People all over the world are sharing their frustration with high prices. Combating these high prices was one of President-elect Donald Trump’s campaign promises and a reason why many elected him to office.

Trump promised to impose a 60 percent customs duty on products imported from China and a 10 percent tariff on products imported from other countries. A tariff is a tax imposed on products coming into a country, in this case the United States.

Texas A&M University-Corpus Christi School of Business Dean Dr. Brian Tietje said these tariffs could potentially increase prices of certain products for locals.

Dr. “A lot of this will have to wait and see how it plays out,” Tietje said.

If a tariff is introduced, several different possibilities may arise.

“Vietnam says the products will be diverted to other countries. If the products come from Vietnam, customs duties from China do not apply,” Tietje said.

The events of 2016 may also be a possible indicator of what might happen this time.

“For example, countries can also change the value of their currencies to make their products more affordable,” Tietje said.

Some tariffs imposed on goods when Trump was president are still in place. Common goods that people in the United States buy from China are things like cell phones, electronic devices, and machinery.

Trump said adding these tariffs would cause manufacturers to come back to the United States, so the products we buy from abroad would become domestic. Local resident Alicia Romero said she supports the idea.

“Creating more jobs instead of sending people to work outside. “If it brings people here, it will help immigration by exporting people here legally and making money,” he said.

However, Dr. Tietje said the third possible scenario for adding tariffs could be that competitors try to match prices. Local resident Jeremy Chassagne said he was concerned about the possibility and thought it would increase prices overall.

“We’re going to end up where we were before. Even though Trump is trying to do the right thing by stimulating the economy and producing more things in this country, I think corporate greed will take over and they’ll do what they’ve always done, which is make profits,” Chassagne said.

Dr. Tietje said it’s too early to tell whether we’ll see inflation of any kind, but it will depend on the underlying economics of supply and demand.