U.S. China trade war heats up: Will new tariffs burn consumers or boost the economy?

NASHVILLE, Tenn. (WZTV) — Recent changes to U.S. tariff policy are sparking a mix of optimism and concern across the country—and here in Nashville, local voices are weighing in on what it could mean for everyday Americans.

President Trump has raised tariffs on Chinese imports to a staggering 125%, up from the previously proposed 104%. This comes after China responded with an 84% retaliatory tariff on U.S. goods. While some view the trade tensions as a bold move to strengthen the American economy, others worry it could drive up prices and stall consumer spending.

“It will be more expensive for us,” said Dr. Julio Rivas, Professor of Economics and Finance at Lipscomb University. “But also, on the other hand, China is going to be able to sell way less products to us. A lot of their economy depends on how much they sell to the U.S.”

In a surprising move, President Trump also announced a 90-day pause on most other proposed tariffs, with the exception of those targeting China. The news sent shockwaves through the financial markets. The S&P 500 surged by 9.5%, while the Dow Jones climbed 7.8% following the announcement.

Still, the long-term economic impact remains uncertain.

“Tariffs mean things will cost more, and people will likely consume less,” Rivas added. “That could hurt the economy’s main engine—consumer spending.”

On the ground in North Nashville, local shoppers shared a more optimistic perspective.

“Yeah, some prices will go up, but we’re going to win in the long term,” said Tyler Conkle. “I’m old enough to know industry left this country 50 years ago. It’s time to bring it back—and tariffs will bring it back.”

Industries are already responding. A report from Automotive News revealed that Nissan’s Smyrna plant is holding off on job cuts and boosting domestic production instead.

In a statement to FOX 17, Nissan said:

“We are reviewing our production and supply chain operations to identify optimal solutions for efficiency and sustainability... We will maintain two shifts of production of the Nissan Rogue at our Smyrna, Tennessee plant, keeping more localized volume in the U.S. that is free of the new auto tariffs.”

Nissan also confirmed it is pausing new orders of the INFINITI QX50 and QX55 for the U.S. market from its Mexico plant while continuing production for other global markets.

With sharp opinions on both sides and policy still evolving, one thing is clear: the road ahead is uncertain—but Americans and industries alike are bracing for impact.

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