- 25% tariffs were introduced on aluminum and steel imports to the U.S. Wednesday.
- Local car dealerships in Tallahassee said they are already noticing increasing prices of car parts and labor.
- Watch the video to hear from one of these companies. An expert also weighs in on potential impacts of these tariffs.
BROADCAST TRANSCRIPT:
There's been a lot of discussions about tariffs, we're now learning what that means for people here in the Big Bend.
ABC 27 spent some time talking to local businesses and economic experts about the impacts we are starting to see.
25% tariffs are now in effect on aluminum and steel imports into the United States.
Tariffs have been an ongoing point of discussion for weeks within the federal government.
Locally, impacts of those discussions have already been felt, particularly in one industry.
"Everything is going up, prices are going up and with that being said, it's making it harder for everybody," said Don'Ta Eggleston, General Manager of VIP Auto Center, a dealership selling used cars.
Steel and aluminum play key roles in the manufacturing of cars.
"I see a lot of people with the struggle of having to sacrifice, whether they want a vehicle or whether they want to maintain a home," said Eggleston.
Eggleston said the prices of parts and labor are going up. As a family-oriented business, he said his main concern right now is working out how to protect his customer's wallets, something that, while worth it, will be extra work.
"We'll have to search that much harder to find those deals that we can provide the customer so that they can have an affordable vehicle," said Eggleston.
Florida State University Economics Professor, Randall Holcombe, said tariffs are making businesses take pause on where they are investing.
"Companies are in the mood of thinking we'll wait and see, rather than make a decision now that maybe turn out to be the wrong decision. That is going to have a negative impact on the economy," said Holcombe.
As the everyday consumer living here in Tallahassee, is there anything you can do to mitigate the impact of these tariffs?
"Pretty much no," said Holcombe. "There's nothing you can do to mitigate the effects. I mean you'll see prices change and so it may be some goods are going to have higher prices as a result of the tariffs so you can change your consumption behavior."
In President Trump's State of Address to a joint Congress, he said tariffs are about protecting American jobs and "protecting the soul of our country."
"President Trump is hoping he'll be in a strong bargaining position so that maybe he can give up some of the tariffs in exchange for some of the other benefits in the international arena," said Holcombe,
However, Holcombe is not convinced this will help local businesses.
"Again, it's like saying that hurricanes in Florida benefit the construction industry, but the overall cost of those hurricanes is greater than the benefit of the construction industry, and the same is true here," said Holcombe. "The benefit to the people whose jobs might be saved is much smaller than the overall cost on the economy."
Following the introduction of these tariffs Wednesday, the European Union has announced their own retaliatory tariffs on American goods. They will begin to go into effect on April 1.
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