Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Trade deal with China- yay! He’s getting it done.
Ok so we had what there was before Trump came into office.
Now we have a 10% tariff on China. A tariff that didn't occur before. YOU are paying that 10%. How is that progress? Do you enjoy paying 10% more for goods? Because that is what is happening and yet, for the last 3 years, all we heard was complaints about inflation. At least under Biden, the inflation was caused by COVID. In this case, it is caused by Trump. But so, yippee?
If China (our adversary, in case you forgot) is not worried, why are they negotiating?
Tariffs do not create inflation, an economic term.
The only thing that creates inflation is expanding the money supply.
Your understanding of inflationary drivers is woefully simplistic, incomplete and inaccurate. While money supply can cause inflation, so too can any disruptions to production and supply chain, to include tariffs.
1. Tariffs Raise Import Costs
Tariffs are taxes on imported goods. When a tariff is imposed, foreign-made products become more expensive. That cost is often passed directly to consumers in the form of higher prices.
Example: If the U.S. imposes a 25% tariff on steel, U.S. manufacturers that rely on steel will face higher input costs, which they pass on to consumers in the form of higher prices on cars, appliances, and construction.
2. Domestic Producers Raise Prices
With less foreign competition due to tariffs, domestic producers face less pressure to keep prices low. They may raise prices to match the new, higher-priced imports, contributing to inflation.
3. Supply Chain Disruptions
Tariffs can disrupt global supply chains, forcing companies to restructure operations, source more expensive components, or face delays—all of which can increase costs and, in turn, prices.
There is plenty of empirical evidence to show this. Many reputable institutions, including the Federal Reserve, IMF, and Brookings Institution, have already documented and shown that the tariffs imposed during the Trump administration led to higher consumer prices in affected sectors.