NASHVILLE, Tenn. (WKRN) — The delay is finally over — President Donald Trump's widespread tariffs went into effect Thursday, Aug. 7.

According to President Trump and his team, the tariffs are designed to level the playing field and increase domestic manufacturing. Nearly all U.S. trading partners, which consists of almost 70 countries, are involved in this trade war. 

The tariff rates range from a baseline 10%, all the way up to 41%. The countries with the highest import tax: Laos, Myanmar, Syria, and Switzerland. 

“The only thing that really stands out to me is the randomness of it,” said Dan Smith, a political economy professor at Middle Tennessee State University. “It’s hard to discern a strategic military purpose. In that case, you’d be focused on Russia, China, Iran. It’s hard to tell an economic purpose. So it’s very puzzling. It’s also very harmful to these countries that are just struggling. They want to sell what they can.” 

Smith said Tennesseans will feel the reset of Trump’s tariffs on the automotive hub and its related industries, like tires or steel. Other more niche industries will also be disrupted. 

“Tennesseeans are going to immediately see it in the prices of things we simply can’t manufacture in the United States, especially coffee. A lot of the Central American and South American countries that we have put tariffs against, we primarily buy produce and coffee from them,” explained Smith.

Smith believes that investment into Middle Tennessee will now decrease, and to some extent, Nashville’s large health care industry will take a hit, especially in the manufacturing of medical equipment.

He also said economists don’t buy the argument that prices will eventually go down once the impact of these tariffs settle.  

“The reason why we’re not putting together iPhones here, or the reason why were not stitching together soccer balls here, is because Americans have better, higher-paying [job] opportunities,” said Smith. “And to do that manufacturing here is going to require pulling those resources away and bidding up the cost of that labor.” 

Of course, the exact fallout from Trump’s tariffs will take time to fully reveal itself. Nations imposed with these tariffs may soon make trade deals with the U.S.

However, Smith said the uncertainty around tariffs is what makes them so volatile to the economy.

The best-possible outcome, according to Smith, is that President Trump will stick by these new tariff rates, companies and countries will adjust, and a “relative certainty” and stability can follow. 

News Source : https://www.wkrn.com/news/tennessee-news/trumps-new-tariffs-take-effect-heres-how-tennesseans-could-be-impacted/