COLUMBUS, Wis., April 10, 2025 (GLOBE NEWSWIRE) -- It has been a tumultuous few days with tariff announcements and market fluctuations. As the dust settles, Michael Eisenga shares some thoughts and insights on the situation and what it means for the U.S. economy and global trade moving forward.
“In order to get the attention of other nations, the tariffs imposed by the U.S. needed to be significant. These new tariff rates are not arbitrary; they were carefully designed to take into account the tariffs other nations charge, along with their non-tariff barriers such as VAT taxes, and currency manipulation,” Michael Eisenga further stated, “This wave of tariffs was intended as a shockwave to prompt other nations to open negotiations on removing these trade barriers and to promote real free trade.”
The current U.S. trade deficit of around $1 trillion was simply unsustainable. We needed a reset to close that gap and address our annual $2 trillion budget deficits. The tariffs are part of a broader strategy to push for a fairer trade system that benefits U.S. businesses and workers.
“I strongly believe it is in the best interest of other nations to cease their tariffs with the US and each other. Once the U.S. makes sufficient progress in its negotiations, we can more effectively target China with high tariffs, ultimately pushing companies to decouple from China in the long run,” Michael Eisenga says. The reality is that nations around the world need access to the U.S. market to sell their finished products more than we need their markets to sell our basic commodities. This imbalance provides the USA the ability to negotiate our own terms.”
While there are concerns about short-term impacts, there is also a silver lining. The higher tariffs China has placed on U.S. exports could drive down grocery prices. With reduced U.S. food exports to China and other nations that retaliate, these goods will need to be sold domestically, creating downward pressure on food and commodity prices. Additionally, Michae Eisenga believes the tariffs will lead to lower oil and gas prices saying, “The tariff-induced adjustments will offset higher pricing pressures in other sectors of the economy.”
Moreover, the tariffs could lead to a policy shift at the Federal Reserve. As the economy adjusts, the Fed may be induced to lower interest rates, which could result in a reduction in Treasury rates. This would provide much-needed relief to businesses, consumers, and the government. The tariffs, while inflationary in the short term, may have a limited effect on inflation — an estimate of just 2% by 2025, according to former Obama economic advisor Jason Furman.
In the long run, these tariffs can create significant benefits for American workers and businesses. By incentivizing domestic production and protecting key industries, tariffs can lead to higher wages and better job prospects. While consumers may experience some price increases, the broader benefits — a more balanced trade relationship and revitalized manufacturing sector — will far outweigh these costs.
Tariffs, however, also have potential effects on energy prices and interest rates. The tariffs could lead to a shift in energy production and supply chains. With increased domestic production and energy efficiency, we may reduce reliance on foreign energy imports, which could lower costs. Additionally, tariffs on specific commodities, such as metals or chemicals used in energy infrastructure, may lower global demand for these resources, potentially reducing energy production costs. If tariffs lead to higher costs and reduced consumption, business investment, or overall economic growth, central banks will respond by lowering interest rates to stimulate the economy. This would help soften the impact of reduced growth and ensure renewed economic growth and stability. Moreover, if tariffs lead to a more stable and low-inflation environment, central banks may keep rates lower, providing relief to businesses and consumers, according to Michael Eisenga.
“The new tariffs, while introducing some challenges, are part of a broader strategy to correct imbalances in global trade and promote fairer economic practices. The long-term benefits of these policies, including more domestic manufacturing, lower oil prices, and potential relief from higher interest rates, should be kept in mind as we continue to navigate these turbulent times,” stated Eisenga.
“As always, I remain committed to supporting the continued growth of American businesses and workers, and we believe these actions, though disruptive in the short-term, will ultimately lead to a stronger, more sustainable economic future,” Michael Eisenga opined.
About First American Properties
First American Properties is a premier real estate investment and development firm specializing in residential and commercial properties. Led by CEO Michael Eisenga, the company is committed to providing value-driven solutions and fostering long-term growth in both local communities and the broader economy.
For further inquiries, please contact:
Michael Eisenga
CEO, First American Properties
Phone: (920) 350-5754
Email: meisenga@firstamericanusa.com
Website: www.mikeeisenga.com
