Trump’s ‘Liberation Day’ Tariffs Spark Mixed Reactions in Santa Barbara

SANTA BARBARA, Calif. — President Trump proclaimed Wednesday as "Liberation Day."

The president's 25% tariffs on imported automobiles and auto parts will be followed by 10% baseline tariffs on U.S. trading partners starting Friday, April 5. Additional reciprocal tariffs are set to begin Wednesday, April 9, 2025.

Consumer reactions are mixed.

"I am in support of them absolutely," said Mario Coronado. "Because if a country is charging us 50% on our goods and we are charging them nothing, that doesn't seem very fair."

"I’m concerned about what it’s going to do to our economy,” said Eiko Kitao. “We’re already at a place where we’re at maximum. You know, I work four jobs to try to make ends meet here in Santa Barbara."

"I don't know what 'Liberation Day' means, but tariffs are a tax on imports," said Peter Rupert, an economist and director of the UC Santa Barbara Economic Forecast Project.

Rupert said consumers will bear the brunt of the cost increases.

"Economics is not political. Economics is about supply and demand, and the incentives that people have given certain policies," Rupert said. "So when you raise tariffs, the incentive people have is to raise their prices, and we’re going to have to deal with higher prices."

Economists are closely watching the concept of elasticity — how buyers and sellers respond to changes in price.

"International trade has been happening for thousands of years,” Rupert said. “We trade for products that are cheaper for us to buy from someone else, and they buy products they can’t make themselves. That’s a win-win situation. When you put on these tariffs, they’re going to reciprocate — and all of a sudden it’s a lose-lose situation."

Rupert, who owns a Tesla made in California, noted that many parts in American-made cars are still imported.

"Look at Ford, for example. Lots of parts are imported,” he said. “If you look at trade between the U.S. and Canada, what happens is we’ll start building something, send it to Canada, they’ll do what they’re good at, and send it back to us. If that crosses the border three or four times and you’re putting a 25% tariff on each transaction, it’s going to jack the price up like crazy."

He also warned of long-term consequences.

"The magnitude of the tariffs is what’s important,” Rupert said. “So looking at some of the countries he’s talking about — putting 25% or even 35% tariffs on them in hopes of rebuilding America — I think that’s very shortsighted."

Consumers may see effects in the markets and eventually at the checkout line.

"In the next few days, we’re not going to see prices rise,” Rupert said. “But as we start buying things from abroad, those prices will rise."

Rupert and a panel of economists will discuss tariffs, housing, artificial intelligence and more at the annual Santa Barbara County Economic Summit. The event will be held Monday, May 12, from 4:30 to 6 p.m. at the Granada Theatre.

For information visit https://efp.ucsb.edu