The stock market took another major hit Thursday as the Dow dropped more than 1,700 points.
The NASDAQ and S&P 500 dropped the most since 2020.
It seems to be an economic experiment using international tariffs as President Donald Trump declared tariffs between 10% to as high as 50%.
The question being debated now is will Trump's plan truly make America wealthy again or could it send the country into a recession.
There are two rounds of tariffs. The first starts this Saturday, but the second round of tariffs next Wednesday could impact everything from the coffee you drink to the new car you thought about buying.
Jack Rigby is a finance major at FGCU and said he is not worried about the price he pays for his coffee rising that much.
However, 99.9% of coffee in the U.S. is imported. Those imports are now facing tariffs.
“I think the prices are going to be taken out of the company's margin more than affect the consumer more,” Rigby said.
Experts agree when it comes to buying a cup of coffee. Many say the real hike will be seen on cans or bags of coffee purchased in grocery stores.
“It's definitely something we'll pay attention to,” Rigby said.
It's not just supermarkets where people will feel the most affected; it's new car purchases too.
But 25% tariffs on foreign-made cars and car parts went into affect on Thursday.
Goldman Sachs predicted new car prices could rise as much as $5,000 to $15,000.
FGCU finance major Brad McClosky suggested more people his age will turn to the used car market.
“You're better off going and looking at a 10-year-old Toyota or Chevy that is better quality and it's going to be half the price,” McClosky said.
FGCU economics and finance major Ryan Edwards plans to graduate this summer and said as a young investor, he’s taking the opportunity to purchase stocks after the stock market plunged Thursday.
It is creating a concern for many 401(k) investors.
“As a long-term investor, 401(k) holder, you should be focusing on the long-term investments. These forks in the road might be a good buying opportunity,” Edwards said.
Edwards’ passion is the market and economy and he even rang the bell on the New York Stock Exchange.
Trump spent much of his second term now teasing, delaying and imposing tariffs.
“I think in a way it's an economic experiment,” Edwards said.
Americans could well be considered the guinea pigs, Edwards added.