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Professors of business in Utah talk about the possible effects of tariffs

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Salt Lake City, Utah – Tariffs that were about to be applied to Canada and Mexico, the United States’ two main trading partners, were put on hold Monday.

The Trump administration acted quickly over the weekend to enact them, but now there is a month-long delay.

According to Elena Patel, an assistant professor at the University of Utah’s Eccles School of Business, “I felt like I knew what was going on last night, and I had a feeling it might shift this morning.” “At the moment, we’re all clinging to the roller coaster and attempting to gauge the direction of the news cycle.”

The constantly shifting environment surrounding the upcoming tariffs on Canada and Mexico is keeping professionals like Patel alert, even in the fast-paced world of business.

“I don’t think there’s any way to predict where this is going,” Patel stated, adding that the tariffs had been suspended for a month by the middle of today.

Our supply chain may suffer significantly if they do go into effect, she warns.

Patel stated, “It’s a US-Mexico-Canada supply chain, not a U.S. supply chain.” “During the production process, products cross the borders six, seven, or eight times. The amount of disruption that tariffs will bring is nearly incalculable.

According to Patel, you, the customer, will ultimately bear the consequences of these actions, even while businesses will bear the initial burden of the tariffs.

“We know that businesses pass these costs on to consumers because we’ve had a lot of tariffs in the past,” Patel stated.

Professor David Berri of Southern Utah noted that companies will have no option except to increase prices even if there is a one-month delay.

According to Berri, “Imagine if you’re just running a business and someone comes along and puts a tax on your business.” “Well, you should anticipate doing less work.”

These lecturers hope cooler heads win out because both parties will be affected by the deal.

“This administration appears to be using this as a negotiating strategy,” Patel stated. “However, there was good progress today to avoid the tariffs being implemented.”

 

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