TAMPA, Fla. (WFLA) – After a smile and a bell cry, the US saw stocks falling in response to President Trump’s announcement of a new mutual global tariff.
USF Economics professor Michael Snipes explained why the stock fell on Thursday.
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“Whenever a policy is submitted, I don’t know exactly when it will be proposed or when it will be installed. What does cost mean? It means my input cost.
For 401k people tied to the stock market, Snipes admits that they can see the amount of changes in their account.
“Yes, there’s probably a dip and maybe your 401K value will be reduced,” Snipes said.
President Trump announced tariffs, even higher in some countries on Wednesday, at least 10%. The next day, the president insisted that a good-looking strategy would work before things get better.
“The market is booming, inventory is booming, the country is booming. The rest of the world wants to see if there’s a way to trade,” Trump said.
Tampa economist Federico Alves also warns that the bumpy road hasn’t finished.
“We will face short volatility in the stock market until countries affected by tariffs can come to the negotiation table and create new, better terms and conditions for exchange,” Alves said.
Alves said it was time for workers to worry a little about their retirement account.
“This panic, or phase, will not last for more than 30 days. The stock market will bounce back late,” Alves said.
University of Tampa economist Michael Koon noted that the Dow Jones industrial average has fallen from its December peak. But it’s still slightly higher today than a year ago. He said that if you are not planning on resignation, there is still time to recover your losses.
