Gen Z is juggling student debt, inflation and a shaky job market. Now it’s getting hit with tariffs, too.

On April 4, 2025, the U.S. stock market experienced a sharp and immediate decline after President Donald Trump announced a sweeping new set of tariffs on imports from more than 60 countries.

The Wall Street Journal reports that the S&P 500 dropped 6% in a single day, erasing trillions of dollars in market value. The Dow Jones Industrial Average and the Nasdaq Composite followed suit, falling 5.5% and 5.8%, respectively.

JPMorgan responded by raising the likelihood of a U.S. and global recession to 60%, citing increased uncertainty, weakened consumer confidence and potential slowdowns in global trade.

For college students, many of whom are already balancing academic responsibilities with rising living expenses and uncertain career prospects, this shift in economic policy creates a big concern.

Tariffs typically lead to higher prices on imported goods, everything from electronics and clothing to basic groceries. Students on tight budgets may begin to feel the pressure as the cost of everyday items rises and inflation remains sticky in key sectors.

Housing, a major expense for most students, could also become more expensive as construction costs rise, further tightening rental markets in college towns like Abilene.

Looking at recent history offers some insight.

During the 2008 financial crisis, college enrollment rose nearly 16% as individuals sought to improve their qualifications while the job market contracted, according to a report by the National Student Clearinghouse Research Center.

However, this surge in enrollment came with trade-offs. State funding for higher education was significantly reduced, leading universities to raise tuition and reduce services.

Many students took on increased debt burdens during this time, and some entered a post-graduation job market that offered fewer full-time roles and lower starting salaries, according to a Harvard University report.

There’s also a unique layer to today’s economic environment: artificial intelligence.

Unlike in 2008, students today are entering a labor market being rapidly reshaped by generative AI tools.

While these technologies can streamline tasks and boost productivity, they also make job applications easier to automate and mass-submit.

This creates an even more crowded applicant pool and a hiring process that may become increasingly impersonal.

At the same time, some entry-level roles, including internships and assistant positions, may be gradually replaced by AI systems, creating fewer opportunities for students to gain workplace experience.

Recessions are often accompanied by higher unemployment rates, reduced job openings, lower starting wages and scaled-back benefits.

Remote work, once a major draw for younger workers, is also seeing a decline, with more companies returning to in-person models to cut costs or increase oversight during economic uncertainty.

Students preparing to enter the workforce in the next one to three years may find themselves needing to be more flexible with location, salary expectations and job functions.

That said, it’s not all gloom.

Economic downturns often prompt adaptation. Many students may look to community colleges, graduate programs or certificate training to strengthen their résumés.

New industries, such as renewable energy, logistics and digital security, may open up as companies shift their priorities.

It’s also worth noting that these tariffs may not last indefinitely.

Just days after the announcement, Trump issued a 90-day pause on the newly imposed tariffs (except those targeting China), citing a need to evaluate their economic impact.

Following the pause, the stock market quickly rebounded, with the S&P 500 recovering much of its initial loss, according to AP News.

This suggests that market volatility may continue to fluctuate based on political developments, trade negotiations or changes in executive decision-making.

In the meantime, global investors have been moving their money into more stable assets, with gold, the Swiss franc and the Japanese yen all seeing significant upticks in demand, reflecting broader caution and a desire to hedge risk.

For students trying to weather the storm, a few practical steps can help.

First, consider reducing discretionary spending. Small budget adjustments now can help stretch limited funds further.

Second, start networking early. Build connections with faculty, alumni and professionals in your field to learn about potential openings.

Third, consider internships or part-time jobs that offer real skills, even if they’re not ideal. Adaptability is a valuable trait in uncertain markets.

Lastly, take advantage of on-campus resources.

ACU offers free career counseling, résumé workshops and meetings with a financial aid counselor. Preparing now, rather than reacting later, can make a meaningful difference.

It won’t be easy, but we’re Wildcats — we’ve powered through worse, and we’ll do it again.