Charlottesville, VA (CVILLE RIGHT NOW) – Dr. Ed Burton, chief economic analyst for WINA and professor of economics at the University of Virginia, shared his insights Wednesday morning on the potential impacts of the Trump administration’s planned reciprocal tariff announcements. Speaking on Morning News, Burton highlighted the uncertainty surrounding the strategy, noting that the president, “Sometimes, he says this is being done to collect revenue and he set up the External Revenue Service for that purpose. Sometimes he says it’s to induce other countries to put lower tariffs on our goods… and then sometimes, he says, it’s to resurrect a manufacturing industry that we don’t have anymore.” While tariffs may generate revenue, Burton cautioned that they also pose risks to consumers and industries dependent on global trade.

Burton stressed that tariffs function as a sales tax, disproportionately affecting lower-income Americans. “It’s not a big sales tax on Jeff Bezos or somebody or Elon… It’s more of a sales tax on people at the bottom half of the income distribution.” He warned of potential retaliatory measures from other nations, which could increase costs for American consumers and make it harder for U.S. industries, especially agriculture, to compete internationally.

The economic implications remain uncertain as the administration weighs different approaches, including country-specific tariffs or a flat 20% rate. Burton cautioned that international response could vary, with some countries resisting U.S. pressure. “Germany, they’re saying, ‘We’re going to retaliate. We’re not negotiating anything’.”

To hear the full conversation, listen here: