Charlottesville, VA (CVILLE RIGHT NOW) – Dr. Edwin T. Burton, a professor of economics at the University of Virginia, shared his concerns about the current tariff policy and its negative effects on the U.S. economy. In a recent interview on Morning News, he stated, “Tariffs hurt the country that imposes the tariff,” emphasizing that American consumers will face higher prices on goods like avocados and cars. He also pointed out the troubling trend of economic uncertainty, highlighting a significant drop in consumer confidence in February. “These are definitely warning signals,” Burton warned, suggesting that tariffs could exacerbate the economic instability. 

Burton also discussed the repercussions of tariffs on industries, particularly the auto sector. “The auto industry in America will now have to add another $6,000 to the cost of the cars because they import most of the parts,” he said. He warned that this could lead to an increase in prices for many everyday items, further burdening consumers. The professor’s assessment comes amid Wall Street’s volatile response to the tariff situation, with markets experiencing significant declines. “The stock market would be up in the morning…by the time the end of the day is there, it’s a bloodbath,” Burton explained, emphasizing the uncertainty businesses face with fluctuating tariff policies. 

Burton also referenced the historical consequences of protectionist policies, drawing comparisons to the Smoot-Hawley tariff during the Great Depression. He cautioned that if the current trend continues, it could lead to a global economic collapse. While he remains hopeful that negotiations with Canada and Mexico could ease the situation, Burton remains firm in his belief that tariffs are ultimately harmful.  

Listen here for the full conversation: