"Tariff Fallout? Douglas Nelson, Murphy Faculty and Tulane Economist, Weighs In"
NEW ORLEANS (WVUE) - President Donald Trump announced sweeping new tariffs Wednesday (April 2), calling it “a new day for the U.S. economy,” while economists and lawmakers sounded alarms over potential economic fallout.
“If you want your tariff rate to be zero, then you build your product right here in America because there is no tariff if you build your plant, your product in America,” Trump said during the announcement, pointing to Hyundai’s planned $5.8 billion investment in Ascension Parish as proof his trade approach is working.
But not everyone sees the move as a win.
“The uncertainty is overwhelming,” said Douglas Nelson, a professor of economics at Tulane University and The Murphy Institute. “I’m on the phone all day. So, I work with trade lawyers in D.C. and New York, with trade policy analysts in Europe. We’ve been talking non-stop. No one has any idea.”
Nelson says Trump’s tariffs may be aimed at protecting American manufacturing, but the cost will not fall on foreign producers but will land squarely on American consumers.
“Hopefully, he doesn’t work in an industry that’s laying people off,” Nelson said when asked how this could affect a typical Louisianian. “Because tariffs make things more expensive and people aren’t going to buy them. Hopefully, he’s not looking to buy a new car or truck. The costs are going to be much higher.”
President Trump’s new round of tariffs targets a wide range of imported goods and materials, though specifics remain unclear. The White House says the goal is to pressure foreign companies to relocate manufacturing to the United States.
Still, Nelson warns the policy could ignite broader trade tensions. “We know from the last round of Trump tariffs, during his first term, that almost the entire burden of the tariff fell on the U.S.,” he said.
Tariffs on products like washing machines, cars, and building materials are expected to rise sharply. Nelson said large corporations are unlikely to absorb those costs.
“When economists talk about who pays the tariff, what we really mean is who pays economically. Who ends up paying,” he explained.
On Capitol Hill, opposition is already forming. The U.S. Senate passed a measure blocking Trump’s proposed tariffs on Canadian imports. Four Republicans broke ranks to vote with Democrats, and Louisiana senators opposed the resolution.
Experts say Louisiana families should brace for the impact as Washington battles trade policy.
“This isn’t just a headline—it’s your grocery bill, your truck payment, your home renovation budget,” Nelson said. “And right now, no one can tell you how bad it’s going to get.”
