Tariffs Take Effect: How It Will Impact Your Wallet and West Texas

ODESSA, Texas (KOSA) – This past weekend marked the implementation of President Trump’s latest tariffs. Shortly after, he dismissed speculations about pausing them, which caused the stock market to experience yet another volatile fluctuation. As concerns grow over possible additional duties on goods imported from China, worries about an impending widespread economic downturn have begun to surface again.

Mickey Cargile, who leads Cargile Investment Management as its president, discusses potential effects of these alterations on consumers, the stock market, and the regional economy right here in West Texas.

Currently, tariffs are at the forefront of the national discussion, raising worries among both investors and typical consumers. However, Cargile believes that their impacts have not yet been completely experienced.

Cargile clarified, "They haven't had enough time to make an impact yet, but once they do, their effects will be unmistakable."

Cargile states that economists anticipate a temporary rise in inflation of around 1% within the coming half-year, after which it should stabilize. Although this uptick might appear modest, it has the potential to affect American spending habits.

Products such as coffee, avocados, clothes, and car components—which are often brought in from overseas—might experience cost hikes because of tariffs. However, Cargile notes that these surges do not necessarily have to impact your finances negatively.

"It's entirely up to you whether you decide to purchase those items," he stated.

He states that even with price increases, their effect will not be as severe as many anticipate.

If they attempt to add the entire tariff to the cost, American consumers will not purchase it," Cargile clarified. "The notion that every piece of clothing will increase in price by the exact amount of the tariff simply isn't accurate.

He provided a straightforward illustration: "Imagine you come across a T-shirt priced at five dollars, manufactured abroad. With a 50% duty added, it now costs $7.50. Consequently, you face this choice—will you purchase it or not?"

Here’s how the updated tariffs are structured:

Certain nations such as Australia will encounter a across-the-board 10% tariff.
Imports from China will face a tariff of 34%.
Cambodia faces a 49% rate, closely followed by Vietnam at 46%.

Amidst the ambiguity, President Trump warned earlier today about potentially imposing additional tariffs on China.

However, aside from tariffs, there are more extensive economic worries—a potential recession looming. Nonetheless, Cargile feels confident that the economy of West Texas can endure this kind of strain.

Fluctuations in oil demand may be significant to us now... but over time, I genuinely doubt they'll affect our economy," he stated. "Our economic foundation is solid with healthy wage growth. Although there's always a chance of layoffs during an economic downturn, those who excel at what they do should maintain their positions.

Regarding oil, prices are presently staying near $61 a barrel, and Cargile anticipates production levels will stay consistent for the time being.

Regarding the stock market, he states that its current fluctuations are simply a regular part of an economic cycle.

The market typically declines approximately every three years," he observed. "Its previous downturn occurred in 2022. I anticipate another decline occurring in 2025.

As for the revival of American manufacturing, Cargile offers historical insight for context. The previous occasion when such a significant change occurred—in the 1980s—took roughly two years to materialize. He anticipates a comparable timeframe for this resurgence.