Prince George’s County is bracing for the impacts of U.S. President Donald Trump’s tariff policy on residents and the economy.

Trump signed an executive order on April 2 declaring a national emergency because of annual U.S. trade deficits. As a result, the president imposed a 10 percent baseline tariff on all imports and even higher tariffs on countries that have trade surpluses with the U.S.

But soon after the tariffs went into effect overnight on April 9, Trump issued a second executive order delaying the higher tariff rates for most countries, except China, for 90 days. Most global importers will experience a 10 percent tax, while China’s increased to 145 percent.

Trump said these tariffs would increase revenue for the U.S. Treasury, improve national production and will serve as a negotiating tactic, according to the Associated Press.

Tariffs are a tax on goods imported from other countries. They can make goods more expensive for consumers because it is American companies that pay the tax, meaning higher costs are passed on to buyers, the Associated Press reported Feb. 1.

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Prince George’s County officials are considering the possible impacts of higher prices as a result of these tariffs, District 3 council member Eric Olson said. Financial impacts on the county may also include federal layoffs and a potential loss of federal grants, Olson added.

“There’s a host of threats to the financial well-being of not just Prince George’s County, but all countries and all municipalities throughout the entire country,” Olson said.

Higher tariffs on construction materials, such as steel and lumber, could pause development projects throughout the county, according to Olson.

University of Maryland economics associate professor Ethan Kaplan explained that in some cases, tariffs may have positive effects on American workers’ wages and could address income inequality. But in this case, the tariffs were not implemented properly, Kaplan said.

“In so many ways, they were just not well thought out at all and implemented really poorly,” Kaplan said.

Recent evidence shows consumers will likely pay for the tariffs through price increases in everyday goods, including grocery items, Kaplan said.

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Olson told The Diamondback higher prices will take up larger proportions of household budgets, forcing some residents to limit spending. Many consumers may spend less at local businesses, decreasing the amount of money circulating in the economy, Olson explained.

“People are going to start cutting back on their spending, and that affects the economy, that affects our restaurants, that affects our local businesses,” Olson said.

Higher prices caused by the tariffs will primarily affect lower-and middle-class populations, according to Kaplan.

“People who consume a large fraction of their income, which is most people, are going to pay … a large fraction of their income towards paying these tariffs,” Kaplan said.

According to U.S. Census Bureau data, 11 percent of Prince George’s County residents live below the poverty level.

A Capital Area Food Bank survey conducted in 2024 found that Prince George’s County has the highest rate of food insecurity within the Washington, D.C., Maryland and Virginia counties surveyed. Fifty percent of respondents from Prince George’s County reported they were food insecure, according to the survey.

At this university, the Campus Pantry serves as an “emergency service” for students, faculty and staff who face food insecurity, Dining Services spokesperson Bart Hipple told The Diamondback.

“[Tariffs] will affect everybody in our community, our students and their parents and other people at home,” Hipple said. “It means a larger proportion of everyone’s income has to go toward basic necessities, leaving fewer dollars for optional purchases.”