Uncertainty over the stock market and tariffs are already affecting how Lawrence County officials and businesses operate and respond.
Eugene Gabriel, a financial advisor who also manages the New Castle city worker’s pension fund, believes the economy is still strong despite an uneven week on Wall Street. Others like county Lawrence County Commissioner Chris Sainato are concerned about the tariff’s long-term effects.
President Donald Trump announced tariffs, some of them reciprocal, during a ceremony on April 2 to 180 countries and territories in an effort to increase domestic production.
As a result of those tariffs, the Dow Jones Industrial Average dropped 0.92 percent over the last five days in the market’s worst days of trading since the pandemic triggering fears of increased prices and a recession.
“Wall Street was not expecting the size and scale of the tariffs,” Gabriel said.
“We’re in uncharted territory right now,” said Sainato, a Democrat who previously was a state representative for 14 terms. “We don’t need a worldwide recession right now.”
The DJIA surged 2,300 points and the S&P 500 was up seven points Wednesday afternoon when Trump announced a pause of most tariffs for 90 days.
Gabriel said the stock market is “psychological,” while Sainato said it relies on perception and stability.
Gabriel said if there is uncertainty about whether to buy or sell, this creates the situation the market was in for the past week.
Jannah Drexler, the public relations manager for Giant Eagle, said the grocery store chain is working closely with its suppliers to minimize the impact of potential cost increases to keep prices as low as possible.
Drexler said items that not grown or produced in America may be subject to price increases. That includes produce, coffee, nuts and seafood.
“Additionally, products that contain imported ingredients or packaging materials, like aluminum and plastic, are likely to be impacted. Importantly, we can confirm that Giant Eagle has not made any tariff-related price changes to date with the exception of a handful of battery and bagged herbal tea items.”
Despite the temporary pause, Sainato has concerns if the tariffs are reinstated and what that could mean to both the local economy and the county’s financial state. Increased tariffs, he said, would lead to costly supplies from office paper to road salt.
New Castle Administrator Chris Frye said the city is currently monitoring the cost of materials it purchases, while PennDOT press secretary Alexis Campbell said the agency is in a wait-and-see attitude as well.