Four months into the Trump Administration there have been many changes, including the introduction of tariffs. As part of Walker's mission to bring the world to the University of South Carolina, Dr. William Hauk, an associate professor in the Department of Economics at the Darla Moore School of Business, was invited to speak at the April Palmetto Forum. Dr. Hauk, an expert in international trade, political economics, and economic growth, is frequently sought after by major news outlets to provide insightful discussions on the real and potential impacts of tariffs on industries, jobs, and consumers in South Carolina.  

Before the audience learned about the impacts, they were presented with a timeline of major trade actions from the Trump Administration (see image below). The most recent action, dated April 11, 2025, involved the exemption of smartphones and electronics. While this may seem like good news, other tariffs imposed on South Carolina's trading partners could have negative economic consequences for the state, according to Dr. Hauk.  

South Carolina's economy is mostly driven by key industries such as automotive manufacturing and agriculture. Dr. Hauk noted that the state exports approximately $2.8 billion in auto parts and imports $1 billion annually. This includes companies like Scout Motors, which is expected to bring 4,000 jobs to South Carolina as it establishes itself in Blythewood. Similarly, Isuzu, a Japanese car manufacturer, plans to expand to South Carolina by 2027. However, tariffs imposed by the Trump Administration create uncertainty, deterring foreign companies and impacting South Carolina's trade and foreign direct investment. For example, the German automaker BMW houses its largest manufacturing plant in South Carolina. BMW imports various advanced technologies, as well as steel and aluminum, which will most likely be impacted by the tariffs. Dr. Hauk predicts that the tariffs will most likely increase manufacturing costs, making it more expensive to produce vehicles and export them to Asia and the rest of North America.  

“More money spent on imported goods and substitutes means less money spent on locally produced goods and services.” - Dr. William Hauk

In addition to the potential effects on economic development, consumers may face price increases on everyday imported goods. Dr. Hauk highlighted that “more money spent on imported goods and substitutes means less money spent on locally produced goods and services.” While this impact may not be immediately apparent to many, services such as higher education could also experience indirect effects. As pointed out by Dr. Hauk, changes to visa policies might lead to decreased enrollment of international students at universities. Despite the uncertainty surrounding tariffs, there is hope that negotiations could ease some of the challenges faced by South Carolina's key industries and residents.