Chattanooga business owners say tariffs ‘bad idea for the customers’

President Donald Trump imposed a flurry of tariffs by executive order ahead of a Friday deadline the White House said was aimed at renegotiating trade agreements with foreign countries and moving more manufacturing to the U.S.

The new tariffs, which Trump approved Thursday, target some 90 countries and will take effect on Aug. 7. A 10% tariff rate will remain in place for countries with which the U.S. has a trade surplus. Countries with which the U.S. has a trade deficit will see a baseline of 15% tariffs, while some countries face significantly higher rates.

Critics of the tariffs, which are essentially a tax on imported goods, say the cost will ultimately be shouldered by consumers who will pay a higher price for those items.

“Higher prices are already showing up for lots and lots of goods, so they’re being passed on,” said Howard Wall, an economist at the University of Tennessee at Chattanooga. “The revenue that’s being collected is, well, it’s coming from higher prices for consumers, or for now — whoever the importers are — are eating it. But it’s not the foreign countries.”

Chattanooga business owners says tariffs ‘bad idea for the customers’

State Sen. Bo Watson, R-North Chattanooga, said the tariffs are about balancing a commitment to free trade with a priority of bringing more manufacturing to the U.S. He said tariffs will facilitate the latter.