President Trump’s new tariffs have been enacted, and the U.S. stock market has lost huge amounts of value.
Wyatt Dunn, a freshman majoring in philosophy, politics, and law, was sitting in Italian class when he decided to check up on his stocks.
“I gasped because I was down 5% in one day. I mean, 5% in one day is huge. That’s a balloon of money. I lost $500 in one day,” Dunn said.
Tariffs are essentially a tax on imported goods. They’re often aimed at protecting American industries from overseas competition in hopes that consumers will buy more goods produced here in the U.S.
They are supposed to create more jobs for Americans, and re-industrialization would benefit national security. But what do the tariffs mean for students at USC?
“Ultimately, you know, the consumers are paying the price for the tariffs,” Dunn said.
Ella Von Thaden, a freshman majoring in art, is no fan of Trump’s tariffs and is among many students worried about their financial future.
“I think it’s kind of dumb. I think we’re kind of shooting ourselves in the foot, and it’s just gonna not be good. Everything’s a lot more expensive,” Thaden said.
Do you ever shop at The Gap, H&M, or Target? All three of these retailers manufacture in Vietnam, China, or Bangladesh. The new tariffs on imports for these brands could reach anywhere from 34% to 46%.
Jonathan Wolf, a sophomore theater major, shares the pessimistic outlook.
“I think it’s going to have a pretty bad impact on inflation and just [the] costs of everything in the U.S.,” Wolf said.
Your morning cup of coffee may be among items that face rising prices. Coffee in American is imported from countries like Brazil and Colombia, both of which are being hit with a 10% tariff.
However, not all students are against the tariffs.
“Right now, (the tariffs) kind of have a negative connotation, or just association,” said Jerri Lopez, a senior studying accounting who voted for Trump. “I think it’s too early to kind of gauge a current impact. But I think if we’re able to keep things in America, that would be best.
Dunn, however, is frustrated with those who voted for Trump based on his economic polices.
" I think a lot of Trump voters should just kind of reflect on what they really believe in...I’m not an economist, but all I know is, right now I’m pretty pissed off. A lot of people are pretty pissed off," Dunn said.
The Dow Jones Average closed on Monday down almost one percent. Tomorrow is another day.