TYLER, Texas (KLTV) – Economist Dr. Ray Perryman says the tariffs imposed by President Donald Trump are resulting in a slowdown of deliveries at ports. Long term, he says the tariffs could have a significant impact.
“One of the difficulties we’re seeing right now is that the rules keep changing,” Perryman said. “They’ve literally made more than 50 changes in policy since they started this process, and that creates a lot of uncertainty, which causes people to kind of wait and see on things. They’re not as anxious to make a big purchase or not as anxious if they’re in business to bring out a new product or hire new people.”
The comments come after the White House said China will work to provide easier access to rare-earth minerals.
“I’ve seen some of the administration officials mention 55 percent [tariffs]. That would be devastating to the economy, and I don’t think that’s where we’ll end up,” Perryman said.
“What I’ve seen thus far are things that seem to be moving us toward an agreement, and I think that you would have to view as positive,” Perryman said, adding that where tariff rates end up with China will be key.
President Trump said the tariffs are an effort to create fairer trade and, in cases such as with Canada and Mexico, to reduce illegal immigration and combat drug trafficking.
“We’ll probably end up at the end of the day with somewhat higher tariffs than we have now or that we’ve had prior to this administration, but not the draconian tariffs that have been talked about in some cases,” Perryman added. “I think you’ll see them back off on the steel and aluminum tariffs because that’s starting to really hurt the farmers. It’s starting to really hurt the energy industry, the electric power industry.”
Perryman said prices may rise on produce and products that have steel or aluminum components if tariffs stay in place.
“You walk in a typical room right now and there’s something in there from 150 different countries, and it all comes about pretty seamlessly, and when you start disrupting the supply chains that make that happen, then you start to get some dislocations,” Perryman said.
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