Local economic expert shares insight on potential tariff impacts

CHATTANOOGA, Tenn. (WDEF) —  With the possibility of tariffs floating around, many are wondering how might that impact our local economy.

As of now, tariffs on Mexico and Canada have been delayed.

News 12 spoke with Thomas Fellows, a local economic expert, on the potential impact the tariffs could have in the near future.

Fellows expects the Tariffs to negatively impact Chattanooga.

He believes that the Automotive and manufacturing industry will be hit with higher costs.

This means Volkswagen and Gestamp will start raising their prices.

Fellows also mentioned higher costs at the grocery stores.

Companies like Little Debbie who import packaging from Canada will have to raise prices.

Fellows also said that if companies import a heavy amount Chattanoogans can expect to see layoffs or even closures.

“If you look at little Debbie foods which imports ingredients and packaging from Canada, there could be a price raise as a result of these tariffs. Which is very sad because many people who eat little Debbie foods are poor,” said Fellows.