Charlottesville, VA (CVILLE RIGHT NOW) – University of Virginia economics professor, Dr. Ed T. Burton, said the U.S. is at the “beginning of the off ramp” when it comes to tariffs, particularly with China, signaling a shift in federal trade policy. “Not much has happened so far,” he said, “but there are increasing signs that the economy is being hurt a little bit.” Citing disappointing earnings from Walmart, Burton noted that price increases are still expected due to remaining tariffs, especially affecting lower-income Americans. 

Burton believes President Trump, whose administration initiated many of the tariffs, will likely move to eliminate them entirely in the coming weeks. “I believe they will reverse this fast,” he said. “The economy is slowing…home sales have gone off the cliff,” he added, pointing to uncertainty in real estate and rising mortgage rates. Despite a significant recent stock market rally, Burton warned that the bond market remains weak, and the broader economic outlook is cooling, especially for working-class consumers. 

When asked about the motives behind the tariffs, Burton said they were likely driven by a mix of goals—from encouraging domestic manufacturing to reducing the trade deficit. However, he concluded the approach was flawed. “Tariffs have hurt the U.S., and they’ve hurt almost every country in the world,” he stated. “There will be some damage from this strange and bizarre tariff episode.” As the administration looks to pivot, Burton remains cautiously optimistic about recovery, though he predicts a tougher job market ahead. 

Listen to the full conversation here: