RALEIGH, N.C. (WPTF) — While the national economy shows signs of slowing, North Carolina remains in good shape, according to N.C. State University Economist Emeritus Dr. Mike Walden.

Walden, the guest on this week’s Carolina Newsmakers, said tracking the effectiveness of tariffs is challenging and most economists did not expect the U.S. to be in its current position. He noted that President Donald Trump’s administration has taken a new approach to trade policy.

Trump on Thursday imposed higher import taxes on more than 60 countries and the European Union, with rates of 10% or higher. Products from the EU, Japan and South Korea are taxed at 15%, while imports from Taiwan, Vietnam and Bangladesh face 20% tariffs. Walden said the trade policies in place for the last 80 years no longer work in today’s global economy.

Walden acknowledged that tariffs are causing some economic pains and that Trump anticipates a period of adjustment as companies adapt to the new taxes. Businesses that import goods from other countries incur the tariffs directly, Walden said, leaving them to either absorb the cost, raise prices or accept lower returns.

So far, many companies are absorbing the added expense, but Walden said that will not continue indefinitely.

Despite the potential for short-term disruption, Walden said the tariffs are unlikely to push the U.S. into a recession in the immediate future. The White House believes the policy will provide clarity and spur new investment, helping restore the nation’s position as a manufacturing power.

Mike Walden is the guest on this week’s edition of Carolina Newsmakers, airing Sunday at 7 a.m. on WPTF and this weekend on many NCN stations.