(WBBM NEWSRADIO) — An international trade expert says President Trump's threats to impose tariffs on other nations will likely cost American consumers more money – even if he doesn't carry out the threats.
Like most trade experts, University of Chicago associate Professor Rodrigo Adao says if Donald Trump does put sanctions on goods from Canada, China, or Mexico, it is Americans who will feel the financial pinch.
“We should be worried about the fact that they can increase the cost for everyone inside the United States. I think that's a likely scenario. I think it comes from both the uncertainty and just the threats keep going and the fact that it's being used repeatedly for many different purposes,” Adao said.
Adao, who is with the UFC's Booth School of Business, said even if President Trump reaches any kind of agreement, there are still consequences.
“There is something that people in trade call like the ‘trade policy uncertainty effect.’ So in academic, what does it mean like you just have like so much uncertainty about what's going on and that uncertainty alone already has effects.”
He says some companies might suspend some investments or build up inventory, and that too could affect prices here.
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