One hundred days after Donald Trump's return to the White House, the economic policies of his administration are already noticeably affecting residents of New York and neighboring states. The aggressive tariff strategy aimed at reducing the trade deficit and bringing manufacturing back to the U.S. raises concerns among entrepreneurs, economists, and consumers.
Tariffs and their impact on consumers
According to data from the Organization for Economic Cooperation and Development (OECD), new tariffs could cost the average American household an additional $3,800 annually. This is especially felt by residents of New York, where the cost of living is already among the highest in the country.
Jeff Kwan, owner of Canal Sound and Light, notes that prices for imported goods have nearly doubled. "Something like this product used to sell for $599, and now — for $1,049," Kwan says. He doubts that consumers are willing to pay such amounts for electronics.
Impact on business and investments
Entrepreneurs and investors are concerned about the instability caused by tariff policies. Goldman Sachs CEO David Solomon warns that uncertainty forces company leaders to cut costs and delay investments. "This negatively affects U.S. economic growth," Solomon notes.
Moreover, New York, as a major trading hub, feels the consequences in the form of reduced trade volumes with Canada and Mexico. In 2023, trade between New York and Canada amounted to $44 billion, and new tariffs could significantly decrease this figure.
Tourism under threat
The tourism industry in New York also feels the pressure. Julie Coker, president of the New York Department of Tourism and Conventions, expresses concerns that tariffs could deter tourists who spend $51 billion annually in the city. "Their spending is very important to us because they not only create jobs for New Yorkers but also spend money in restaurants or attractions," Coker says.
Market reaction
The stock market responded to tariff policies with a significant decline. The S&P 500 index fell by 7.3% during the first 100 days of Trump’s presidency, marking the worst start to a presidential term since the 1970s. This raises concerns among investors and economists about a potential recession.
Conclusion
The tariff policy of the Trump administration has a significant impact on the economy of New York and neighboring states. Rising prices, reduced investments, and consumer concerns create challenges for businesses and residents in the region. While the administration promises long-term benefits, the short-term consequences are already tangible at the local level.
