How Trump's economy will impact New Yorkers and around the Tri-State area
NEW YORK CITY (WABC) -- Now 100 days into Trump's second Presidency, we are taking a look at how Trump's economy and particularly tariff policies will impact New York and the entire Tri-state.
ABC News polling shows far more people think that the economy in worse shape since Trump took office and that his policies, including tariffs, could cause a recession.
Tariffs could cause the average American household an extra $3,800 a year.
The S&P 500, which has the greatest impact on people's retirement funds, has dropped nearly 8 percent since inauguration day.
"I guess I can point anywhere and something is made in China. This whole wall is made in China," Jeff Kwan said.
Jeff Kwan, who runs Canal Sound and Light, which his parents started in 1977, is worried that everything could soon go up in price.
The business has survived a recession, September 11th and COVID.
The issue of tariffs could tax goods made in China by as much as 145 percent.
"Something like this item used to sell for $599, now it sells for $1049. This is the most recent crazy price increase," Kwan said.
He doubts anyone would buy a wireless speaker for that price.
"When you start talking about tariffs, then consumers start thinking cost of goods and services are going to increase. So that perception is concerning," Julie Coker, the President of NYC Tourism and Conventions, said.
She worries that tariffs could deter tourists who spend $51 billion a year in the city.
"Their spend is so important to us because not only do they create jobs for New Yorkers, but you're talking about people spending money and the restaurants or spending money in the attractions," Coker said.
And half of that money is spent by international visitors, which is why Coker is doubling down on a global tourism campaign.
"That message right now is running in 17 countries. We'll continue that through the balance of the year, really spreading the message that we're open for business," Coker said.
Open for business and hoping that NYC's tourism industry doesn't become collateral damage in Trump's attempt to reduce the trade deficit and increase U.S. manufacturing.
"Consumer confidence has absolutely collapsed. And you can understand why," Economist Justin Begley of Moody's Analytics said.
He expects the President to monitor the impact of his tariff policies and eventually back off.
"The pace of which he backs off is very important because the longer that the effective tariff rate stays above the 20% that it's at, the more damage is going to be done to the economy," Begley said.
Meanwhile, Kwan is anxious.
"Retail has already been kind of declining over the years. And then this is just like a big punch in the gut, like almost a knockout blow, you know?" Kwan said.
He hopes it's more bluster than bite so that he can keep the family business going for another 50 years.
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