KNOXVILLE, Tenn. (WJHL) — A recent study from the Boyd Center for Business and Research at UT Knoxville reveals that Tennessee business leaders are experiencing the impact of tariffs. Nonetheless, the majority believe the likelihood of a recession is minimal and that the state’s economic prospects are more promising than the nation’s overall in the upcoming year.

Business owners across the state participated in that study, with special emphasis put on the impact of tariffs.

Don Bruce, Director of the Boyd Center, expressed to News Channel 11 that while Tennessee business leaders are impacted by tariffs, consumers are still absorbing the higher costs to purchase the imported goods they desire.

“What we’re observing now is the strong resilience, particularly among middle and higher-income households, in handling these costs,” Bruce mentioned during a Zoom interview. “The demand for those imports remains very robust. Therefore, we’re not witnessing a significant shift away from imports as of yet, though the tariffs are only starting to take full effect.”

“Despite discussions around tariffs and recession, it’s encouraging to see these industry leaders have a more positive outlook for Tennessee,” Bruce stated. “The state’s initiatives to establish a dynamic environment for business operations seem to be yielding results.”

An interactive site showcasing the study’s insights on tariffs can be accessed here. Further details on the survey and its comprehensive results can be found here.

The next business study is scheduled for January. Bruce asked business leaders to look for the survey when it launches and to participate.