Assistant Professor of Economics Mitchell Vaughn spoke with WFMY News 2 about how businesses react to tariffs.
Mitchell Vaughn, assistant professor of economics at Elon University, spoke with WFMY News 2 about the recent tariffs imposed by President Donald Trump.
In the article, “Uncertainty over tariffs, rising costs fuel financial anxiety for some NC farmers,” Vaughn said that in times of uncertainty, larger corporations hold back on investments.
“Businesses are much more hesitant to invest when there’s higher and higher uncertainty in the environment, right? And so maybe there’s a 100% tariff, maybe we should build a plant,” said Vaughn. “If the business doesn’t know that tariff will still be in place in a year, they’re not necessarily going to take the time to build a factory.”