Fed Study Shows Modest Consumer Price Impact from Proposed Tariffs

[mystery-ak]

Fed Study Shows Modest Consumer Price Impact from Proposed Tariffs

John Carney3 Mar 20258
7:07

Americans are not likely to be hit hard even if the tariffs on Mexico, Canada, and China rise significantly this week.

A new analysis from the Federal Reserve Bank of Atlanta suggests that the consumer price impact of proposed import tariffs may be smaller than commonly assumed, with much of the cost increase tied to North American trade partners rather than China. While tariffs would lead to one-time price increases on certain goods, the study finds that these effects are not the same as sustained inflation.

President Trump and administration officials have said they plan to put in place sweeping new tariffs on Tuesday. The new import duties would apply to around $1.5 trillion of goods. Goods from Mexico would get a 25 tariff trate, as would imports from Canada, except Canadian energy, which would face a 10 percent rate. Tariffs on China are set to rise by an additional 10 percent.

Modest Price Increases, Not Runaway Inflation

The study estimates that new tariffs—10 percent on imports from China, 25 percent on imports from Canada and Mexico, and 10 percent on imports from other nations—could increase consumer prices between 0.81 percent and 1.63 percent. These estimates depend on how much of the tariff costs businesses pass through to consumers.

President Trump has said he no longer plans to impose an across-the-board 10 percent tariff on imports from other nations. Instead, he now envisions “reciprocal” tariffs that would match tariffs imposed by countries exporting goods to the U.S.

more
https://www.breitbart.com/economy/2025/03/03/new-fed-research-shows-modest-consumer-price-impact-from-proposed-tariffs/

[Bigun]

And exactly ZERO impact if you don't buy foreign made goods.

[catfish1957]

And exactly ZERO impact if you don't buy foreign made goods.

Exactly...  and if we as a nation, takes the time and effort to check the labels, we can minimize the damage.

[LMAO]

Fed Study Shows Modest Consumer Price Impact from Proposed Tariffs

John Carney3 Mar 20258
7:07

Americans are not likely to be hit hard even if the tariffs on Mexico, Canada, and China rise significantly this week.

A new analysis from the Federal Reserve Bank of Atlanta suggests that the consumer price impact of proposed import tariffs may be smaller than commonly assumed, with much of the cost increase tied to North American trade partners rather than China. While tariffs would lead to one-time price increases on certain goods, the study finds that these effects are not the same as sustained inflation.

President Trump and administration officials have said they plan to put in place sweeping new tariffs on Tuesday. The new import duties would apply to around $1.5 trillion of goods. Goods from Mexico would get a 25 tariff trate, as would imports from Canada, except Canadian energy, which would face a 10 percent rate. Tariffs on China are set to rise by an additional 10 percent.

Modest Price Increases, Not Runaway Inflation

The study estimates that new tariffs—10 percent on imports from China, 25 percent on imports from Canada and Mexico, and 10 percent on imports from other nations—could increase consumer prices between 0.81 percent and 1.63 percent. These estimates depend on how much of the tariff costs businesses pass through to consumers.

President Trump has said he no longer plans to impose an across-the-board 10 percent tariff on imports from other nations. Instead, he now envisions “reciprocal” tariffs that would match tariffs imposed by countries exporting goods to the U.S.

more
https://www.breitbart.com/economy/2025/03/03/new-fed-research-shows-modest-consumer-price-impact-from-proposed-tariffs/

lol

“Transitory”

[Wingnut]

I don't need to buy Corona or Avocados.