11/19/2025
Speakers assess impacts of U.S. tariff policy
Two University of Idaho faculty members see few benefits from President Donald Trump’s tariff policy so far but said it’s too early to know the how tariffs will affect U.S. manufacturing, employment and the overall economy.
Steve Peterson, an economist, and Terrance Grieb, a financial specialist, addressed the short-term effects of tariffs on goods made outside the United States for an audience at Tuesday’s Renfrew Interdisciplinary Colloquium at the U of I in Moscow.
“We’re engaged in a great experiment,” Peterson said. “I hope you’re buckled into your seats!”
Peterson traced the history of U.S. trade and export policy, calling the current tariff rate on imports the highest since World War II. He said tariffs are taxes, paid by both buyers and sellers, regardless of whom the tariff is levied on.
Grieb said the inconsistent application of tariffs contributes to economic uncertainty but hasn’t affected the boom in financial markets. That’s because the rise in stock indexes is driven by the “magnificent seven,” large technology companies that are benefiting from investor interest in artificial intelligence.
The U.S. Supreme Court heard arguments Nov. 5 on a challenge to the Trump Administration’s ability to impose tariffs using emergency powers created in a 1977 law. Grieb said he would not be surprised if the court overturned those tariffs. But relief may be short lived, he said.
“If the Supreme Court rules against the administration, it won’t go away,” he said. The administration may find a new basis to re-impose the tariffs, he explained.
The next colloquium will be Tuesday, Dec. 2, after a break for the Thanksgiving holiday.
(Kenton Bird, reporting and photos)
