High Point U. Economist Analyzes the Impact of Tariffs

HIGH POINT, N.C. (WGHP) — The ambiguity surrounding tariffs is not only affecting bodyshops and the prospects of students but also showroom operations at the High Point Furniture Market.

FOX8 interviewed High Point University Economics Professor Dr. Jerry Fox. During a lecture on Wednesday, a student interrupted to share the most recent update, causing him to immediately alter the direction of the lesson.

"We talked about tariffs in class today, and a student mentioned, 'I just read the headline stating that President Trump has decided to put a hold on them,'" Fox explained.

The students in Fox's economics class at HPU subsequently had the opportunity to observe the outcomes.

"How is the stock market responding to that? We swiftly moved our focus to it, and it appeared to rise about 4-5 percent. The stock market reacted positively to this information," Fox stated.

In light of the tariff upheaval, Fox thinks Trump is shaking up the trade markets to assess the negotiation dynamics between the U.S. and other nations. This has raised concerns for him about potential job losses, especially within the manufacturing sector.

"One of their points was that the ultimate aim would be to strengthen American manufacturing sectors through these tariffs over time," he explained.

He cited the furniture sector as a case where industries might face financial hardship.

High Point is regarded as the global epicenter for furniture, yet much of what you'll find in the showrooms isn’t manufactured within the U.S.

"We export furniture and import it from China as well as other parts of the globe. High tariffs being implemented could significantly affect us," he stated.

Considering the push to support domestically produced products, Fox thinks this might lead to improved trade deals for the U.S. on a global scale.

"Maybe other nations could purchase additional American products through trade agreements if they manage to resolve issues and enhance the current trade balance, which includes addressing the ongoing trade deficit," Fox stated.

Currently, he states that many of the market worries stem from the apprehension about an economic downturn.

"We aim to prevent negative outcomes such as rising inflation or increased unemployment. Certainly, we want to steer clear of an economic downturn. This would represent the worst possible situation. However, I believe this doesn’t necessarily have to occur," Fox stated.

Rather, he wishes for events to move away from a possible downturn in the upcoming weeks and months.

"I would expect that it would calm down and result in more consistent outcomes, reducing the frequent fluctuations," Fox stated.

He states that the objective ought to be stability since companies and financial markets dislike fluctuations due to the increased risks involved, and nobody wishes to incur losses.

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