EAST LANSING, Mich. (WLNS) — Stock market uncertainty continues after another day of wide swings on Wall Street, as concerns of a trade war with China grow.
But Michigan State University Economics Professor Charles Ballard advised investors to not panic, as well as to invest on a regular basis. He said whether its every month or every year, in the long run, the stock market has always proved to be a good investment.
Ballard said the bigger concern is the increase on tariffs of $50 billion on United States goods China announced Wednesday. That increase covers soybeans, aircraft and cars, among other things.
Ballard said, even if nothing else happens, Americans will pay more for anything made with aluminum and steel. He also said if retaliatory tariffs slow down U.S. exports, it could eventually impact U.S. jobs.
“Those U.S. Exports are tied to jobs in the United States,” Ballard said. “And if you’re an exporter of, for instance, agricultural products, and a big part of your market is now closed off, well, that loses income for you. You’ve got less money to spend at the grocery store, the hardware store. Then you have ripple-effects throughout the economy.”
President Donald Trump tweeted Wednesday the U.S. is not in a trade war with China, adding that war was lost years ago.
China has yet to announce when their increased tariffs will take effect.