Richard Warr, interim associate dean for faculty and academic affairs and professor of finance, provided his expertise to WalletHub in response to the question, “How will the recent trade tariffs impact stock prices in the short and long run?”
He shared four ways tariffs will affect stocks, ultimately stating that, “The bottom line is that while there will be some winners from tariffs, the overall effect on the economy is negative. Tariffs are a tax, and furthermore, the presence of a trade war creates uncertainty for companies. It’s hard to plan when you don’t know what the cost of materials is going to be and when you don’t know whether your exports are going to be competitive.”
Read Professor Warr’s full response on WalletHub.