Charlottesville, VA (CVILLE RIGHT NOW) – Jill Schlesinger, CBS business analyst, joined Morning News to discuss the potential economic effects of tariffs, particularly in the auto industry. The conversation also cited Professor Ed Burton, an economics professor at UVA, who is also an advisor to Virginia’s Republican governor, stating that he “hates tariffs” despite his political affiliations. Schlesinger emphasized that economists generally view tariffs as a “blunt instrument” that raises prices in the short term, creating economic strain.  

The discussion focused on how tariffs could impact U.S. auto manufacturing and consumer costs. Schlesinger explained that around half of all vehicles sold in the U.S. are imported, with 60% of vehicle parts also coming from abroad, making a rapid transition to domestic production unrealistic. “You could see prices go up by say 3 grand, maybe 10 grand, 15,000 if you’re one of these fancy folks who drives an imported BMW or Audi.” This, she warned, could lead consumers to cut back on other spending, potentially slowing economic growth. 

The broader concern, Schlesinger noted, is that tariffs might contribute to stagflation, a situation where economic growth slows while prices rise. “Consumer sentiment and confidence surveys have really turned pretty sour,” she said, noting that this decline is affecting all income levels and political affiliations. While she clarified that a recession isn’t imminent, she cautioned that continued price increases could push inflation beyond the Federal Reserve’s target, making interest rate cuts unlikely in the near future. 

Listen to the full conversation here: