Marketplace Who will tariffs hurt the most?
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Apr 4, 2025 Tariffs are set to hit low-income Americans hard, slashing their disposable income significantly. With rising prices, the labor market may suffer if demand for higher-priced goods declines. Meanwhile, New Mexico is creatively allocating oil and gas revenues to improve childcare access. In West Texas, residents face dire water shortages, complicating economic growth. The gaming industry also wrestles with tariff impacts, specifically regarding supplies from China, prompting companies to rethink strategies.
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Market Underestimation of Tariffs
- The stock market's negative reaction to the tariffs shows it underestimated Trump's commitment to them.
- The tariffs are worse than Trump initially proposed, impacting markets significantly.
Tariff Impact on Prices
- Price increases from tariffs will likely affect perishable goods first, like fruits and vegetables.
- Durable goods will see price increases later as existing inventories are depleted.
Economy's Resilience and Turning Point
- Despite tariff threats, the March jobs report showed continued hiring and strong consumer spending.
- This resilience suggests the economy can withstand some uncertainty, but the tariffs mark a turning point.