Posts

Potential $100M hit to Greater Winston-Salem local economy

Potential $100M hit to Greater Winston-Salem local economy
February 03
12:56 2025

The ongoing tariff policies stemming from the Trump administration’s trade war could have significant financial implications for individuals and families across the United States. According to the Tax Foundation, tariffs could result in an average tax increase of $830 per U.S. household in 2025. While this figure may seem like an abstract national statistic, its real impact on communities like Winston-Salem is tangible and could be substantial.

A $100 million economic hit for Winston-Salem

Winston-Salem, with a population of approximately 250,000 residents, has around 120,000 tax-paying households. If each household is paying an additional $830 in tariffs, that equates to a collective economic shift of nearly $100 million ($99.6 million) that would no longer circulate within the local economy.

This loss in consumer spending could have serious implications:

*Small business struggles: With nearly $100 million less being spent locally, small businesses—especially restaurants, boutiques and service providers—could face slower sales and potential closures.

*Job market concerns: As businesses experience declines in revenue, layoffs could follow, reducing disposable income even further and creating a negative economic cycle.

*Real estate market impact: Less disposable income means fewer home improvements, lower retail spending on home goods and potentially a slower housing market as fewer residents can afford down payments or rent increases.

*City tax revenue decline: When local businesses struggle, city tax revenue may decline, potentially affecting public services, infrastructure projects and school funding.

What does $830 less mean for Winston-Salem Residents?

For many in Winston-Salem, an extra $830 per year in taxes is more than just a number—it’s a shift in lifestyle, priorities and financial decisions. Consider what $830 represents in the daily lives of residents:

*Groceries and essentials: A family shopping at local grocery stores like Publix, Harris Teeter or Food Lion might find themselves cutting back on quality food items or relying more on discount stores and food assistance programs.

*Dining and entertainment: That amount could cover months of dining out at local favorites like Forsyth Seafood or The Porch Kitchen Cantina, meaning small businesses could see fewer customers and a decline in revenue.

*Health care and wellness: For families on tight budgets, this could mean postponing necessary medical visits, skipping gym memberships or cutting back on wellness services that contribute to overall health.

*Transportation and gas: With fluctuating fuel prices, an additional $830 in expenses could force many to rethink commuting habits, use public transit more or even delay car maintenance.

*Childcare and education: Many families depend on day care services or extracurricular activities for their children. This tax burden could force parents to make tough choices about enrichment programs or after-school care.

*Savings and investments: For those who are trying to build their financial future, an $830 tax hit could mean the difference between contributing to a retirement plan, starting an emergency fund or investing in home repairs.

Impact on consumer prices and household expenses

The Associated Press highlights that the newly enacted tariffs on imports from Canada, Mexico and China are expected to lead to higher prices and reduced supplies for U.S. consumers. Economists predict these tariffs will result in increased costs for importing goods, potentially causing higher inflation and a slowdown in economic growth.

The New York Post reports that everyday items such as avocados, beer and gasoline are anticipated to become more expensive due to the tariffs. A 10% tariff on Canadian crude oil could increase gasoline prices by approximately 10 cents per gallon. Additionally, imported vehicles, electronics and clothing from China are expected to see price hikes, directly affecting consumers’ wallets.

Economic impact on North Carolina

Businesses across the Carolinas are preparing for the potential impacts of the tariffs, which could affect various sectors, including manufacturing and agriculture. The uncertainty surrounding these trade policies has led to concerns about increased costs and potential disruptions in supply chains, according to WNCT.com

The Carolina Journal emphasizes that instead of leaning into protectionism, North Carolina and the nation would benefit from trade policies that enhance competitiveness and encourage growth. The article suggests that fair trade agreements and support for innovation are crucial for the state’s economic health.

Finding a path forward

For Winston-Salem, these potential economic challenges highlight the importance of supporting local businesses, advocating for fair trade policies and ensuring that economic strategies account for both national- and community-level impacts. While global trade negotiations may seem distant, their effects hit close to home, influencing everything from household budgets to the city’s overall economic health.

As these tariff policies continue to unfold, Winston-Salem residents, business owners and policymakers must consider ways to adapt, ensuring that the community remains resilient in the face of shifting economic conditions.

This article was written by Derwin L. Montgomery, formatted, organized and edited by ChatGPT. 

About Author

Derwin Montgomery

Derwin Montgomery

Related Articles

0 Comments

No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Only registered users can comment.

_____________________________

Search wschronicle.com

Featured Sponsor

Sign Up For Chronicle Updates

  • This field is for validation purposes and should be left unchanged.

Categories

Archives

More Sponsors