While tariff tensions are high, the stock market is taking a hit.
A metro Atlanta financial analyst told Channel 2′s Courtney Francisco when you can expect prices to rise here locally.
Shoppers in metro Atlanta are paying attention.
“I am definitely worried. These tariffs are going to make that just so much worse,” shopper Megan Wartell said.
Emory University’s finance professor Tucker Balch said the Trump administration’s tariff policy means distributors pay more for another country’s product.
“What they’re trying to do is bring all these manufacturing jobs back into the United States. I think that will happen, but we won’t see that benefit until one or two years,” Balch said.
He said you will notice the price of goods go up when stores replenish a product.
“Our groceries can’t sit on a shelf for a month,” Balch said. “So they’ll notice the price hike in the grocery stores first?” Francisco asked. “That’s right,” Balch replied.
Then clothing, appliances, and electronics will come next.
“I’ll tell you something that’s happening in my own household is my son’s phone broke and we’re going to go buy that new iPhone before the new prices hit,” Balch said. “Who knows, it will be in the next few weeks before you will see the iPhone costing up to 50% more.”
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He said the uncertainty has caused the stock market to slip.
“The last time we saw anything that aggressive was the beginning of COVID,” he said.
Balch said this week, families need to consider their 401K plans.
“For a young person who has many more years ahead of them working, absolutely it might make sense to stay in the stock market,” Balch said. “I have moved all my stocks into cash or bonds. I think the stock market is the best place for the long term, but I want to wait for things to settle down and then I’ll tip-toe back into it once we see this tariff stuff is resolved.”
He said a few things we buy are exempt, including computer chips, lumber, copper, gold, silver, and pharmaceuticals.
Balch said the sales tax will go to the treasury and offset Trump’s plan to lower taxes for corporations.
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