Consumers in Durham express concerns as stocks dive amid tariff announcement: 'Like I'm trapped'
RALEIGH, N.C. (WTVD) -- Wall Street had one of its worst trading sessions in years as investors sold off following President Donald Trump's announcement Wednesday of new tariffs.
During his remarks in the Rose Garden, Trump said the moves will spur investment, bring jobs back to the United States, and on-shore production of key products including pharmaceuticals and chips. However, he has acknowledged that short-term disruptions are possible. Economists have largely projected there will be price increases as a result of the tariffs, affecting a variety of industries, including food, electronics and clothing.
"I feel like I'm trapped," said Nakeesha Pickens, who works in the fast food industry.
She's already taken measures to try to keep up with inflation and is now concerned for what may lie ahead.
"I had to definitely cut some my bills that I really used to have, but I don't need anymore. And I had to cut down on a lot of stuff so I can be able to afford rent," said Pickens, who added that she's picked up overtime shifts.
Pickens traveled in from Asheville on Thursday for an event with the Union of Southern Service Workers in Durham, honoring long-time activist Bertha Bradley, known as "Mama Cookie." Bradley, who was recognized by the City of Durham in 2022, worked in the fast-food industry and as a home health care worker for 30 years before retiring.
"I'm still having to struggle because they didn't have a retirement plan. So now I'm living off of the Social Security that I put into the system. And I'm kind of scared about that because it's not enough," said Bradley.
Another group affected by rising costs is retirees.
"I was a real penny pincher," said Dale Herman, who spent 22 years working at the state, split between the University of North Carolina and the North Carolina Department of Health and Human Services.
He retired in 2004 and worked for six years overseas before returning to the United States.
"I'm dependent on the state retirement and Social Security and VA benefits. (If) any of those (are) cut, within a year, I'd be facing having to sell my house," said Herman.
He's particularly frustrated about a lack of cost-of-living adjustments to the state retirement plan.
"From when I left the state government until now, I've lost over 50% of purchasing power," said Herman, who has tried to express his concerns directly to legislators.
Thursday comes following the worst-performing quarter on Wall Street since 2022 and amid broader fears of a possible recession. Brant Spesshardt, President of Steward Wealth Strategies, says he's fielded calls from clients asking about tariffs.
"Tariffs aren't a brand new thing, but they are a headline that are getting people's attention and causing concern, whether it has to do with their portfolios or whether it has to do with major upcoming purchases," said Spesshardt.
The firm was founded in 2008, amid the Great Recession. Spesshardt said they've taken lessons from what unfolded during that period to address current market conditions.
"History does repeat itself. And even from 2007-2009, that Great Recession, for investors that hung on, they actually recovered and they did really well. Same thing happened with the pandemic. The problem, though, is none of us know when things will return or reverse themselves," said Spesshardt.
Naturally, strategy will differ based on each client, including their respective ages.
"There is a difference in time horizon for a 25-year-old and a 65-year-old. And we want to have those proactive conversations and see if we need to make adjustments," Spesshardt explained.
The sell-off continued during the early stages of after-hours trading Thursday. Spesshardt said that, generally, clients want to have a conversation about these unfolding circumstances.
"We don't want to make a lifetime investment decision based on just what the headlines are today. But at the same time, we need to be empathetic. We need to care about the person we're talking to and know that it's personal finance and not finance. It's not just numbers, it's the people on the other end. And everybody has their own sets of concerns," said Spesshardt.
Triangle international corporation impact
According to the Research Triangle Regional Partnership, the Triangle is home to more than 700 international companies from dozens of countries. That includes household names like Cisco, Lenovo, Novo Nordisk, GlaxoSmithKline, and more.
"If you're SmithKline or Novo Nordisk and you sell stuff, which I guarantee that they do to Europe, given potential reciprocation there those markets are going to decline," said Gerald Cohen, Chief Economist at the UNC Kenan-Flagler Business School's Kenan Institute.
Cohen said he expects the latest round of reciprocal tariffs to impact some of the area's largest companies -- corporations that serve as the backbone of the economy at places like RTP.
"If you're a biotech company, you might be doing super high-tech work. But I'm sure some of your machines that you buy, some of the fluids that you need, you know, the chemicals that you need, come from abroad," Cohen said.
Economists say the new tariffs are intended to drive more investment from international companies at places like RTP, but they could also come at an unintended cost.
"They're meant to try to force companies to create more production in the U.S. Some of that will happen. But also probably there's going to be significant job loss," Cohen said.
This week, Governor Stein also weighed in on what the latest tariffs mean for North Carolina commerce, saying in a statement:
"I am focused on lowering costs for North Carolina families. These tariffs won't do that."
