While the stock market will be impacted, so too will consumers, a financial expert said.
TOLEDO, Ohio — A 25% tariff on goods from Canada and Mexico has taken effect, marking one of the latest trade actions by the Trump administration.
Just two days in, the economic impact is already being felt.
According to finance experts, the stock market index—a key measure of market performance—dropped by 3% within 24 hours of the tariff announcement.
That decline could mean losses exceeding $3,000 for some investors and their financial portfolios.
University of Toledo finance professor Collin Gilstrap said the tariffs will have widespread effects across multiple industries, but consumers will likely bear the brunt of the economic shift. Essential goods such as gas, oil, metals, and food are expected to see price increases, adding to household expenses.
“Consumers will feel it most in the rising costs of everyday goods,” Gilstrap said.
Experts are advising individuals to cut unnecessary expenses and save where possible.
Gilstrap said a major factor behind the market’s drop is uncertainty over global trade. Gilstrap explains that concerns about slower international growth and trade disruptions are leading investors to move away from riskier assets.
“Investors that are very close to retirement they are thinking about moving to less risky assets as trade prospects and global growth will slow down because of these tariffs,” he said.
Local businesses in northwest Ohio could also face challenges. Companies such as Owens-Illinois, Owens-Corning, Dana, and The Andersons all generate more than 25% of their revenue from international markets, according to Gilstrap.
“The fact that northwest Ohio in particular does a lot of goods trading with Canada and Mexico, both input into production and then ultimately selling their final goods to those two countries, I think it could be painful for us,” Gilstrap said.
For those nearing retirement, financial experts recommend consulting with advisors to reassess investment strategies and ensure long-term financial stability.
