Trump’s tariffs will harm NC and the worst is yet to come | Opinion
The first 100 days of Donald Trump’s second presidency will have left most Carolinians significantly worse off economically than when the president first took office. And the worst is yet to come.
The United States economy is now in an unexpected free fall — trillions have been lost in just the first 80 days of Trump’s administration and faith in even those assets considered “safe” in recessionary times is faltering. We have seen bond markets and the U.S. dollar wobble, which should terrify us all. Historically, losses of this scale resulted from some sort of massive external disruption — a world war, a national financial crisis, a global pandemic. This current crisis — unlike any other in global history — is a result of a president whose decision-making rationale remains elusive to almost everyone, including his closest advisors.
As millions watch their 401K retirement accounts crumble and wonder what the president’s next unpredictable statement might do to their life savings, North Carolina now faces an uncertain economic future.
Charlotte, a hub for banking, will soon feel the long-term effects of not only the recent market volatility but the catastrophic impact of a potential recession — layoffs and downsizing of institutional infrastructure are only a few of the likely effects of Trump’s wild-ride economic policies for Charlotte’s banking industry.
Many software and tech companies that have begun to build with gusto in the Raleigh-Durham area have told me quietly that they are no longer considering plans for expansion in North Carolina. They are now wondering how they will stay afloat as global investors begin to look towards more stable markets or when tariffs start to further cripple the once burgeoning U.S. tech sector.
Household costs for Carolinians will also spike very soon as the impact of Trump’s tariffs (based on a formula that even the most conservative and right-wing think tanks believe to be bonkers) take effect in the coming weeks and months. Farmers and small businesses in North Carolina have yet to feel the full impact of Trump’s economic policies, but I would argue that they may be hurt the most in the long-term.
While the goal of restoring manufacturing to the U.S. is laudable, the means by which the Trump administration is going about it might crater the economy. The whole “no pain no gain” message is not applicable in this context. I fear that there is no gain here for North Carolina — there is only pain.
Instead of what it is currently doing, the Trump administration should be crafting a robust industrial policy to build up manufacturing in the U.S. They should also take the time — in consultation with respected economists — to craft a curated and targeted tariff policy that homes in on specific sectors where strategic tariffs will effectively protect key industries, including those in North Carolina, from unfair trade practices and malignant actors.
By nature, tariffs tend to be imprecise and blunt instruments. The backlash they create can often be worse than the injury they are intended to address. That’s why they are meant to be used thoughtfully and precisely if the true goal is to protect U.S. interests.
Trump’s baffling tariff-calculation formula is also worrisome. It conflates non-tariff barriers with tariffs and fails to distinguish between distinct types of trade practices. This has led to the administration imposing a 10% tariff on a country filled with penguins. A population of penguins — adorable as they are — have yet to collectively export products to U.S. markets let alone engage in malignant trade practices.
This is a time to pause.
North Carolina — straddled by the gorgeous iris hues of the Blue Ridge mountains and its beloved serene beaches — has become a mecca not only for finance and banking but for technology and medical innovation. We must all watch what is unfolding in our economy and start to ask questions — the right questions about the logic behind these tariffs and Trump’s economic policies. It is a fundamental tenet of citizenship to continue to question politicians and policies if they are not serving us. That is our role as citizens. That is our right as Carolinians. Congress has an immense power that it has yet to exert to protect the interests of Carolinians. It is their job to provide a check on any economic policies that will harm North Carolina.
It is now time that our Congress members step up to represent the hard-working citizens of this great state. The question is will they do so before it’s too late.