Despite predictions of inflation caused by approximately $100 billion in tariffs collected, there is little evidence in current inflation data. Mainstream economists and businesses anticipated that tariffs would translate into higher consumer prices, viewing tariffs as a tax on consumers. However, inflation readings have remained below expectations, with the latest figures showing a modest increase of 2.4%. The Council of Economic Advisers noted a decline in import prices, leading to discussions surrounding the timing of tariff impacts and consumer behavior.
Despite economists predicting significant inflation due to $100 billion in tariffs, inflation data has not reflected this expectation, remaining unexpectedly low.
Economists stated various reasons for the absence of tariff-induced inflation, including the potential time lag for tariffs to influence prices and consumer resistance.
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